Which of the following statements about private companies is true?

A private company can indeed be limited by shares or by guarantee, which is a true statement. This means that private companies have the flexibility to choose their structure based on their business needs. A company limited by shares raises capital by issuing shares to shareholders, who then invest in the company and share in its profits. On the other hand, a company limited by guarantee does not have a share capital; instead, members agree to contribute a specific amount to the company’s assets if it is wound up, which is typical for non-profit organizations or clubs.

The other statements, while potentially true in isolation, do not encompass the breadth of characteristics defining private companies as effectively as the first statement about their capacity to be limited by shares or by guarantee. The restriction on offering shares to the general public and the requirement for at least two directors relate to company law regulations but do not provide a comprehensive view of the structural options available to private companies.

Thus, the correct answer accurately reflects a key aspect of private company formation and structure.