Which of the following best describes a limited company?

A limited company is best described by the notion of sharing liabilities among shareholders, which fundamentally encapsulates the concept of limited liability. This means that the financial responsibility of the shareholders is limited to the amount they invested in the company, protecting their personal assets from the company’s debts and liabilities. This structure encourages investment, as individuals can contribute without risking their entire personal fortunes.

The other options present definitions that do not align with the characteristics of a limited company. For instance, a company owned by one person refers to a sole proprietorship rather than a limited company, which involves multiple shareholders. The suggestion of a company having no limit on its liability contradicts the core principle of a limited company; in fact, that's characteristic of partnerships or sole proprietorships where personal assets may be at stake. Lastly, a temporary organization for project-specific purposes describes a project-based entity, such as a joint venture or special purpose entity, rather than the enduring structure typically associated with limited companies.