The number of shareholders in a private limited liability company ranges from

Assessment: JAMB UTME - Economics - 2004 Subject: Economics

Question 1 Report

The number of shareholders in a private limited liability company ranges from
Answer Details
The correct answer is "two to fifty." This means that a private limited liability company can have a minimum of two shareholders and a maximum of fifty shareholders. A private limited liability company is a type of business entity that limits the liability of its owners or shareholders to the amount of their investment in the company. This means that if the company incurs debts or legal liabilities, the personal assets of the shareholders are generally not at risk. The number of shareholders allowed in a private limited liability company can vary depending on the country or jurisdiction where the company is registered. However, in general, the range of allowable shareholders is relatively small compared to other types of business entities like public limited companies or partnerships. Having a limited number of shareholders in a private limited liability company can offer certain advantages, such as greater control over the company's operations and a more personalized relationship between the shareholders. However, it can also limit the amount of capital that the company can raise from investors.

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