Paper 2 · November 2024 · private limited companies
A private limited company is best defined as a business
Aowned by the state and run entirely on behalf of the general public.
Bwhose shares are freely bought and sold on a public stock exchange.
Cowned by shareholders with limited liability, whose shares cannot be sold to the general public.
Downed and run by one person alone, who carries unlimited liability for its debts.
Explanation
A private limited company (Pvt Ltd) is a separate legal entity owned by shareholders whose liability is limited to what they invested, but unlike a public company its shares cannot be offered to the general public or traded on a stock exchange.
Derived from ZIMSEC Business Enterprise Skills Paper 2, Nov 2024, Q1