What is a limitation of shares in a private limited company?

The limitation of shares in a private limited company is primarily related to their restricted ability to attract investment, which is reflected in the correct answer. Private limited companies cannot sell shares to the general public, which means their sources of capital are limited compared to public companies that can issue shares widely on the stock market. This restriction can hinder the company's ability to raise significant funds for expansion or investment since they are reliant on a smaller number of shareholders.

In a private limited company, ownership is typically spread among a small group of investors or family members, which may limit the capital available for business activities. Unlike public companies that have a broader pool of investors to draw from, private limited companies must depend on private arrangements, which might not suffice for large-scale investments.

The other options do not accurately reflect the limitations of shares in a private limited context. The ability to sell shares publicly is a characteristic of public limited companies, so that is not applicable here. The notion of ownership by a single individual is also misleading, as private limited companies can have multiple shareholders, and the requirement for shareholder dividends is not universally applicable, as companies, regardless of being private or public, can choose to reinvest profits rather than distribute them as dividends.