Which form of business is owned by shareholders with limited liability but whose shares cannot be bought by or sold to the general public?

• A. Public Limited Company
• B. Incorporation
• C. Cooperative
• D. Private Limited Company

Answer: (D)

Ownership with limited liability and restricted share transfer to the general public describes a private limited company. It gives shareholders protection for their investments—personal assets aren’t at risk beyond what they’ve put in. Shares aren’t offered on public markets; transfers typically require consent from other shareholders or directors, keeping control within a small group. In contrast, a public limited company sells shares to the public and trades them on a stock market, which is exactly what this description rules out. Incorporation is simply the process of forming a company, not the ownership form with transfer restrictions, and a cooperative is owned by its members who use its services, not by external shareholders with transfer restrictions.