Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Shares

Question:

On the basis of the number of members, companies can be divided into:

(A) Unlimited Company
(B) Public Company
(C) Private Company
(D) One Person Company (OPC)

Choose the correct answer from the options given below:

Options:

(A), (B) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer:

(B), (C) and (D) only

Explanation:

The correct answer is Option (4) → (B), (C) and (D) only

Companies are classified on the basis of the number of members as follows:

  1. Public Company → Minimum 7 members; no maximum limit.

  2. Private Company → Minimum 2 members; maximum 200 members.

  3. One Person Company (OPC) → Only 1 member.

Unlimited Company (A) refers to liability of members, not the number of members, hence it does not fit this classification.