PRC-3 · Chapter 2 · Question 38 of 61
Four siblings inherit a manufacturing business and run it together. They want to incorporate to gain limited liability but want to strictly prevent any outsiders from buying shares in their family business. Which structure should they choose?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Private Limited Company
Explanation
A Private Limited Company offers limited liability while legally restricting the right to transfer shares, ensuring ownership stays within the selected group (like a family).
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