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:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (B), (C) and (D) only
Companies are classified in two separate ways. On the basis of the liability of members they are companies limited by shares, limited by guarantee and unlimited companies. On the basis of the number of members they are public companies, private companies and One Person Companies.
(A) Unlimited Company Incorrect. It belongs to the classification by liability: its members' liability has no limit, whatever their number.
(B) Public Company Correct. A company that is not a private company.
(C) Private Company Correct. At least 2 members and at most 200 (excluding employees).
(D) One Person Company (OPC) Correct. A company with only one person as a member.
NCERT (2026-27 edition):
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