Private limited company shares cannot be bought by the general public.

• A. It has unlimited liability
• B. It is a non-profit organization
• C. Shares cannot be bought by or sold to the general public
• D. Shares can be bought by the general public

Answer: (C)

Private limited companies keep ownership private by restricting who can buy or sell shares. Shares aren’t offered to the general public and transfers of shares usually need approval from other shareholders or directors. Because they aren’t listed on a stock exchange, there’s no easy way for members of the public to buy into the company, which is why the idea that shares can’t be bought by or sold to the general public is true. This contrasts with public limited companies, where shares are sold to anyone on the market and traded on a stock exchange. The other options mix up different legal forms: unlimited liability would not apply to a private limited company since it has limited liability; a non-profit description fits a different kind of organization; and allowing public access to shares describes a public company, not a private one.