Seems pretty clear in my mind :-)
I read it that:
If I am the aircraft operator, the flight is private if I am onboard with no other passengers, but means I can be flown by my pilots and crew in my private C208.
I can also take other passengers on my private C208, as long as they aren’t paying for their seat and as long as I am onboard.
If the C208 is owned by my company, it is classed as a passenger transport operation.
LB, I’m thinking that there is no passenger limit for my privately operated C208. If it’s owned by my company it’s a moot point based on the above paragraph.