Which statements are correct about Private Limited Company ? It is governed by the Companies Act 2003 It has a separate legal entity and limited liability. Its documentation requirements are the lowest among all forms.

Challenger App

Home/

Questions/

Principles of Administration/

Types of organizations

No.1 PSC Learning App

★

1M+ Downloads

Get App

Which statements are correct about Private Limited Company ?

It is governed by the Companies Act 2003
It has a separate legal entity and limited liability.
Its documentation requirements are the lowest among all forms.

ANone of these

Bi only

CAll

Dii only

Answer:

D. ii only

Read Explanation:

Private Limited Company is governed by the Companies Act 2013 and has separate legal entity plus limited liability.
It actually has highest documentation requirements.

Read more in App

Related Questions:

Choose the correct statement(s) regarding Non-Profit Organisations (NPOs).

Non-profit organisations are legally exempt from paying taxes due to their social or public service objectives.
Non-profit organisations distribute excess profits to shareholders to ensure financial sustainability.

Consider the following statements about private sector organisations:
i. They can be small-scale, medium-scale, or large-scale entities.
ii. They offer greater job security compared to public sector organisations.
iii. Their capital is raised through private investments, loans, or issuing shares.
Which of the statements given above is/are correct?

Which form of organization listed is not governed by any specific law or act?

Private Limited Company
Proprietorship Firm
LLP
Partnership Firm

How many types of organizations are there?

Identify the correct statement(s) regarding Proprietorship Firm

It has the lowest documentation requirements.
The management is handled by the proprietor.
It does not enjoys limited liability.