Limited Companies: Correct Statements

Steps:

• Identify statements about limited companies (e.g., liability, ownership, formation).
• Evaluate statement 1: True, as limited companies restrict owner liability to invested capital.
• Evaluate statement 2: False, since limited companies can be publicly traded, not just private.
• Evaluate statement 3: False, because shares are transferable without full member consent in public limited companies.
• Select option matching only statement 1 as correct.

Why B is correct:

• B states "1 only," aligning with the legal definition where limited liability protects personal assets, per company law.

Why the others are wrong:

• A includes false statement 2 on company type restrictions.
• C includes false statements 2 and 3 on trading and transfer rules.
• D selects only false statement 3 on share transfers.

Not enough information on exact statements, but based on standard definitions.

Final answer: B