Question

A private company cannot

1.issue shares
2.invite public to subscribe shares
3.be a manufacturing company
4.be a limited company
which answer correct

Answer 1

Answer:2 invite public to subscribe shares

Explanation:

A company whose shares are not offered to public for subscription and which operates in a less stricter leagal requirements - PRIVATE COMPANY

Answer 2

A private company cannot invite the public to subscribe to shares. (Option 2)

• Private corporations are not permitted to produce prospectuses since they are not permitted to invite the public to subscribe to their shares.
• A prospectus can only be issued by a public company. The prospectus is not a formal offer, but rather an invitation to offer.
• Private corporations may issue stock and have shareholders, but their shares are not traded on public markets and are not issued via an initial public offering (IPO). As a result, private corporations are exempt from the Securities and Exchange Commission's (SEC) stringent filing requirements for public companies.
• Consequently, option 2 is the correct answer to the question.