Question

A company for charitable purpose may be incorporated as:

• A. A Limited company
• B. An Unlimited company
• C. Limited by Guarantee
• D. Partnership

Hint:

For charitable organizations, a company limited by guarantee is often preferred as it offers limited liability without shares.

Answer 1

The Correct Option is C

Step 1: Identify company types.
- Companies formed for charitable purposes are often incorporated as companies limited by guarantee. This structure limits the financial liability of its members to the amount they guarantee.