Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Shares

Question:

The maximum number of members in a private company can be...........

Options:

100

200

300

Unlimited

Correct Answer:

200

Explanation:

The correct answer is option 2- 200.

The maximum number of members in a private company can be 200.

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 the case of one person company.
(c) Limits the number of its members to 200 (excluding its employees).