Q. What is the name of the company owned by a group of individuals who pledge to pay in case the company is wound up?
Answer: Company limited by guarantee
Notes: A company limited by guarantee is owned by a group of individuals who pledge to pay a certain amount in case the company is wound up. This structure is commonly used for non-profit and charitable organizations where any profits earned are reinvested into the business and the members or guarantors are shielded from debts in case of bankruptcy.
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