Which of the following business units can issue shares?
- Sole trader
-
private limited companies
- Central Banks
- Super market
The correct answer is: B
Explanation
A private company is a firm that is privately owned by shareholders who have each invested a sum into the business.
Private companies can issue shares and have shareholders, but their shares are not issued to the general public for subscription and are not traded on the public stock exchange market like public companies.
This means that they can raise capital through the issue of shares privately but not publicly. To do this, they do not need to meet the requirements of the Security and Exchange Commission, but rather, the members of the company (minimum of 2, and maximum of 50), only need to agree on selling the shares to new members.