Which of the following is a type of limited company?

A Private Limited Company is indeed a type of limited company and is specifically designed to limit the liability of its members. This means that the personal financial risk of the shareholders is limited to the amount they invested in the company, providing protection for their personal assets. In this structure, shares cannot be sold to the general public, which allows for a more controlled ownership environment, often involving close family or friends.

The concept of limited liability is a key advantage for investors, making Private Limited Companies attractive for small to medium-sized enterprises. Additionally, this structure can enhance credibility with customers and suppliers, as it demonstrates a formal business setup with legal requirements such as registration and compliance with specific regulations.

On the other hand, options like a Sole Proprietorship are not limited companies since they do not provide liability protection and all personal assets of the owner can be at risk. Similarly, Franchising Companies refer to a business model that is not defined by limited liability, and Cooperatives do not fall under the limited company category as they are owned and operated for the benefit of their members. Hence, the classification of a Private Limited Company as a type of limited company stands out clearly.