The most popular form of business organisation is for large scale busi...
Correct option is B.
Private limited companies or LLCs are commonly chosen by businesses due to the following reasons:
Limited Liability: One of the primary advantages of a private limited company or LLC is that it provides limited liability protection to its owners. The personal assets of the owners are separate from the company's liabilities, reducing personal risk.
Flexibility in Ownership: Private limited companies or LLCs offer flexibility in ownership and can have multiple owners or shareholders. The ownership shares can be easily transferred or allocated among the owners, allowing for changes in ownership structure as the business evolves.
Separate Legal Entity: A private limited company or LLC is considered a separate legal entity distinct from its owners. It can enter into contracts, own assets, and engage in legal proceedings in its own name, enhancing business credibility and continuity.
Tax Advantages: Private limited companies or LLCs often provide tax advantages and flexibility in terms of tax planning and optimization. Depending on the jurisdiction, they may offer tax benefits or the ability to choose between different tax regimes.
Access to Funding and Investors: Private limited companies or LLCs have greater ease in raising funds compared to other forms of business organization. They can issue shares to attract investments from external sources, including venture capitalists, angel investors, or private equity firms.