What is a defining feature of private limited companies?

Private limited companies are characterized by ownership that is known and limited to a specific group of individuals or entities. This means that shares of a private limited company cannot be sold to the general public and are often held by a small number of shareholders, making it easier to maintain control and confidentiality regarding ownership.

This structure allows for more straightforward decision-making processes, as the shareholders often have a closer relationship with the company. It also protects the shareholders by limiting their liability to the amount they invested in the company, meaning they are not personally responsible for the company's debts beyond their investment.

In this context, the other characteristics do not apply to private limited companies. Public trading of shares, unlimited liability, and nonprofit objectives do not define their structure or purpose, making ownership and its limitations a key defining feature.