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Minimum subscription should be received with in ______days
- a)130
- b)125
- c)120
- d)135
Correct answer is option 'C'. Can you explain this answer?
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Minimum subscription should be received with in ______daysa)130b)125c)...
ANSWER b)
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The time limit allowed for the collection of the minimum subscription is one hundred and twenty days. The time period should be calculated from the date of opening of the issue. Also, the minimum subscription should be collected within thirty days from the date of issue of the prospectus.
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Minimum subscription should be received with in ______daysa)130b)125c)...
Minimum Subscription Timeframe
The correct option for the minimum subscription time frame is 'C', which is 120 days. Let's discuss the reason why.
Explanation
When a company offers shares to the public, it sets a minimum subscription level that must be met before the public offering can be considered successful. This minimum subscription level is the amount of money that the company needs to raise through the sale of shares to meet its financial objectives.
To ensure that the minimum subscription level is met, companies typically set a minimum subscription time frame. This time frame is the minimum period of time during which investors must subscribe to the shares. If the minimum subscription level is not met within this time frame, the offering may be canceled, and investors' money will be refunded.
In the case of this question, the minimum subscription time frame is 120 days. This means that investors must subscribe to the shares within 120 days of the offering's launch. If the minimum subscription level is not met within this time frame, the offering may be canceled, and investors' money will be refunded.
Conclusion
In summary, the correct option for the minimum subscription time frame in this question is 'C', which is 120 days. Companies set a minimum subscription level and a minimum subscription time frame to ensure that they can raise the necessary funds through the sale of shares.
The correct option for the minimum subscription time frame is 'C', which is 120 days. Let's discuss the reason why.
Explanation
When a company offers shares to the public, it sets a minimum subscription level that must be met before the public offering can be considered successful. This minimum subscription level is the amount of money that the company needs to raise through the sale of shares to meet its financial objectives.
To ensure that the minimum subscription level is met, companies typically set a minimum subscription time frame. This time frame is the minimum period of time during which investors must subscribe to the shares. If the minimum subscription level is not met within this time frame, the offering may be canceled, and investors' money will be refunded.
In the case of this question, the minimum subscription time frame is 120 days. This means that investors must subscribe to the shares within 120 days of the offering's launch. If the minimum subscription level is not met within this time frame, the offering may be canceled, and investors' money will be refunded.
Conclusion
In summary, the correct option for the minimum subscription time frame in this question is 'C', which is 120 days. Companies set a minimum subscription level and a minimum subscription time frame to ensure that they can raise the necessary funds through the sale of shares.
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Minimum subscription should be received with in ______daysa)130b)125c)120d)135Correct answer is option 'C'. Can you explain this answer?
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Minimum subscription should be received with in ______daysa)130b)125c)120d)135Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Minimum subscription should be received with in ______daysa)130b)125c)120d)135Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Minimum subscription should be received with in ______daysa)130b)125c)120d)135Correct answer is option 'C'. Can you explain this answer?.
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