Which of the following is an advantage of private limited companies?

The advantage of shareholders having limited liability is key for private limited companies. This means that shareholders are only financially responsible for the company's debts up to the amount they have invested in shares. In the event that the company faces financial difficulties or insolvency, personal assets of the shareholders are protected, and they cannot be held personally liable beyond their investment. This structure encourages investment, as it reduces the risk for individuals who contribute capital to the business.

In contrast, the other options present characteristics that do not align with the benefits of private limited companies. For instance, shares of private limited companies cannot be traded on the stock market, which is exclusive to public companies, and ownership isn't automatically transferred to outsiders, as this type of company often has restrictions on share transfers. Additionally, private limited companies are not required to disclose all financial information publicly, unlike public companies, which enhances confidentiality and business privacy. Hence, limited liability serves as a critical advantage that can help attract and retain investors.