BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Private Company
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Public Company
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Government Company
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Unlimited Company
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Detailed explanation-1: -According to the provisions of Companies Act 2013, Private limited company can be started with minimum 2 members and maximum 50 members.
Detailed explanation-2: -Members: You can start a private limited company with a minimum of only 2 members (and maximum of 200), as per the provisions of the Companies Act 2013.
Detailed explanation-3: -Limitations of Private Companies Private companies cannot freely transfer shares to the public. They find it more difficult than public companies to access external financial support. Shareholders have greater risks and liabilities.
Detailed explanation-4: -A private limited company is any type of business entity in “private” ownership used in many jurisdictions, in contrast to a publicly listed company, with some differences from country to country.
Detailed explanation-5: -There is no limit on maximum numbers of members in case of public companies (in India). Was this answer helpful?