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__________ company does not invite public to subscribe to its share capital
  • a)
    Both Private and Public Company
  • b)
    Public Company
  • c)
    Private Company
  • d)
    None of these
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
__________ company does not invite public to subscribe to its share ca...
Private Company does not invite public to subscribe to its share capital

Explanation:

A private company is a type of company formed privately by a group of individuals, and it is not open to the public to subscribe to its share capital. The following are the reasons why private companies do not invite the public to subscribe to their share capital:

1. Limited number of shareholders: Private companies have a limited number of shareholders, and they do not offer their shares to the public. The shareholders of a private company are usually family members or close friends.

2. No need for public funding: Private companies are not required to raise capital from the public. They can raise capital from their shareholders or from banks and financial institutions.

3. Avoiding public scrutiny: Private companies prefer to avoid public scrutiny as they are not required to disclose their financial and other business information to the public.

4. Control: Private companies prefer to maintain control over their business and do not want to dilute their ownership by offering shares to the public.

In conclusion, private companies do not invite the public to subscribe to their share capital as they prefer to maintain control over their business, avoid public scrutiny, and raise capital from their shareholders or from banks and financial institutions.
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Community Answer
__________ company does not invite public to subscribe to its share ca...
Private company because it's shares or 
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__________ company does not invite public to subscribe to its share capitala)Both Private and Public Companyb)Public Companyc)Private Companyd)None of theseCorrect answer is option 'C'. Can you explain this answer?
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