A business usually owned by private individuals backed by financial institutions is often a

• A. Sole trader
• B. Cooperative
• C. Public limited company
• D. Private limited company

Answer: (D)

Focusing on ownership and funding structure helps here. A business that is usually owned by private individuals and can be backed by financial institutions fits a private limited company. This form keeps ownership in a relatively small group of private shareholders and operates as a separate legal entity with limited liability, so owners aren’t personally liable beyond their investment. It also allows financing from banks or private investors without selling shares to the public. In contrast, a sole trader is owned by one person with unlimited liability; a cooperative is owned by its members who use its services and pursue member interests; and a public limited company raises capital from the general public through shares on the stock market, with ownership spread widely.