Which entity is considered a limited company?

A limited company is defined as a business structure that limits the financial liability of its owners to the amount they have invested in the company. This means that personal assets of the owners or shareholders are protected; if the company incurs debts or faces legal issues, the owners are only responsible for the company's debts up to the amount they invested. This structure is designed to separate personal finances from business liabilities, providing a safety net for individual investors.

The correct answer reflects this principle of limited liability that is fundamental to the concept of a limited company. In contrast, the other options describe businesses that do not offer this level of protection or have different organizational characteristics. For example, a business with unlimited liability exposes owners to risk beyond their investment, a sole proprietor has full personal responsibility for the business's debts, and a business formed by two individuals with equal shares could either be a partnership or another form of ownership but does not inherently imply limited liability without the specific structure of a limited company.