Question

A private company is one where ______.

Options

• Share transfer is restricted

• Shares can be traded on stock exchange

• There is no restriction on transfer of shares

• None of the above

Answer 1

A private company is one where share transfer is restricted.

Explanation:

A private business must have limits in its Articles of Association, such as: 

• Restrict the transfer of shares.
• Prohibit public invitations to subscribe for its shares or debentures.