What are three types of companies?

• A. Sole trader, Partnership and Franchise
• B. Association, Society and Trust
• C. Limited by shares, Unlimited and No liability
• D. Private company, Public company and Guarantee company

Answer: (D)

These questions focus on the main forms a company can take. Three recognized types are private company, public company and guarantee company. A private company is typically limited by shares and has restrictions on share transfers and the number of shareholders. A public company can raise funds from the public and must meet stricter disclosure and governance requirements. A guarantee company has no share capital; members’ liability is limited to the amount they guarantee, and these are often used for charities or non-profit organizations. The other options mix in business structures (like sole trader or partnership), non-company entities (association, society, trust), or describe liability arrangements rather than distinct company types. So the trio listed—private, public, and guarantee companies—best fits the concept of three types of companies.