Which statement is true about a private limited company (Ltd.)?

• A. It has limited liability; shares are not offered to the general public.
• B. It can raise capital by selling shares to the public.
• C. It has unlimited liability.
• D. It is usually a nonprofit organization.

Answer: (A)

Private limited companies limit the liability of their owners to the amount they’ve invested in shares, and they keep ownership private by not offering shares to the general public. This combination—limited liability plus private shareholding—defines a private Ltd. and explains why the statement is true.

The other ideas don’t fit: selling shares to the public is a feature of public limited companies, not private ones; unlimited liability is not how a private Ltd. operates—liability is restricted; and private Ltds are typically for-profit businesses, not nonprofit organizations.