Types of companies and features of a private company:
Answer Text: Types of companies:They are of two types:-Private limited company-Public limited companyPrivate limited company:-A private limited company is a business unit with a minimum membership of two and a maximum of 50.Features of a private company:-The number of shareholders is limited to between 2 and 50 excluding employees of the company.-The transfer of shares is restricted.-It is managed by board of directors.-They are not allowed to sell shares to the public-Perpetual continuity-its life may not depend on the life of members.-Profits made by the company are shared according to share capital contribution.-It can only start operations after receiving certificate of incorporation.