Question

Which of the following organisations is most likely to sell shares for sale to invited investors?

a. A Sole trader
b. Partnership
C. Private limited company
d. A business with unlimited liability

Answer 1

C. Private limited company

Step-by-step explanation:

Ownership in a private limited company is restricted, unlike in a public limited company. The shareholders of a private limited company are usually family members, close friends, or people with a shared interest.

A private limited company can raise capital by selling additional shares. Because becoming a shareholder in a private limited company is restricted, private companies raise capital by selling shares to existing shareholders or to invited investors.