Restrict the right to transfer the shares
Limit the number of its members
Appoint auditor
Publicly invite subscription to shares
Answer is Wrong!
Answer is Right!
The correct answer is: Publicly invite subscription to shares.
A private company is a company that is not a public company. A public company is a company that offers its shares for sale to the public. A private company does not have to offer its shares for sale to the public, and it can restrict the transfer of its shares. A private company can also limit the number of its members. A private company must appoint an auditor, but it does not have to publicly invite subscription to shares.
Here is a brief explanation of each option:
- Restrict the right to transfer the shares. A private company can restrict the right to transfer its shares. This means that the shareholders of a private company cannot sell their shares to anyone they want. They can only sell their shares to someone who is approved by the company.
- Limit the number of its members. A private company can limit the number of its members. This means that the company can only have a certain number of shareholders.
- Appoint auditor. A private company must appoint an auditor. An auditor is a person who is responsible for checking the company’s accounts and making sure that they are accurate.
- Publicly invite subscription to shares. A private company does not have to publicly invite subscription to shares. This means that the company does not have to offer its shares for sale to the public.