What is an LTD (Private Limited Company)?

A private limited company, commonly referred to as an LTD, is indeed defined as a business that is owned by shareholders, where shares are sold privately, typically by invitation only to select individuals. This structure allows the company to maintain a level of control and confidentiality, with shares not being available for public trading on the stock exchange.

This characteristic of inviting only a limited number of shareholders allows for a more stable ownership structure, where ownership is typically retained among a smaller group of individuals, often family members or close associates. The private nature of an LTD means that the financial details and operations are not required to be disclosed to the general public, unlike public companies, which must adhere to stringent reporting requirements.

The other options do not accurately represent the nature of a private limited company. For instance, a company that sells shares publicly pertains to a public limited company, while a partnership involves different legal structures and responsibilities among partners. Additionally, the notion that a business cannot raise capital does not apply, as private limited companies can indeed raise capital but in a different manner, focusing on private investment rather than public offerings.