Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:

Which of the following is not a feature of a private company?

Options:

Maximum 200 members

Minimum 10 person

Restricts the right to transfer shares

All of these

Correct Answer:

Minimum 10 person

Explanation:

Private Company: A private company is one which by its articles of association:
(a) Restricts the right to transfer its shares.
(b) A private company must have at least 2 persons, except in case of one person company.
(c) Limits the number of its members to 200 (excluding its employees).