PRC-3 · Chapter 2 · Question 50 of 61
Mr. Hassan wishes to convert his successful sole proprietorship into a corporate entity to gain limited liability, but he refuses to share ownership with anyone else. Which specific corporate structure is available to him?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Single Member Company (SMC)
Explanation
An SMC is a specialized class of private limited company that legally allows a single individual to act as the sole shareholder and director while enjoying limited liability.
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