Which term describes the business model of a private limited company?

The term that accurately describes the business model of a private limited company is limited liability. In a private limited company, the owners, often referred to as shareholders, have their financial liability restricted to the amount they invested in the company. This means that if the business faces financial difficulties or goes bankrupt, the personal assets of the shareholders are protected, and they are not personally liable for the company's debts beyond their initial investments.

This characteristic of limited liability encourages investment, as individuals can participate in the growth of the business without the risk of losing personal assets. This is in contrast to sole proprietorships and partnerships, where owners may be personally liable for all business debts.