Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R):Assertion (A): Prospectus contains complete information about the company and the manner in which the money is to be collected from the prospective investors.Reason (R): Because Prospectus is an invitation to the public that a new company has come into existence and it needs funds for doing business.In the context of the above two statements, which of the following is correct?a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer?

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Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R):
Assertion (A): Prospectus contains complete information about the company and the manner in which the money is to be collected from the prospective investors.
Reason (R): Because Prospectus is an invitation to the public that a new company has come into existence and it needs funds for doing business.
In the context of the above two statements, which of the following is correct?

a)
Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
b)
Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
c)
Assertion (A) is true, but Reason (R) is false.
d)
Assertion (A) is false, but Reason (R) is true.

Correct answer is option 'A'. Can you explain this answer?

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Test: Class 12 Accountancy: CBSE Sample Question Papers- Term I (2021-22)

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Given below are two statements, one labelled as Assertion (A) and the ...

Prospectus is a formal legal document issued by a corporate body to invite the public or investors for subscribing the securities. It contains all pertinent information about an investment offering.

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Given below are two statements, one labelled as Assertion (A) and the ...

Assertion (A): Prospectus contains complete information about the company and the manner in which the money is to be collected from the prospective investors.

Reason (R): Because Prospectus is an invitation to the public that a new company has come into existence and it needs funds for doing business.

In this question, we need to analyze whether both the assertion and reason are true and if the reason is the correct explanation of the assertion.

Explanation:
A prospectus is a legal document that provides detailed information about a company to potential investors. It serves as an invitation to the public, informing them that a new company has been formed and is seeking funds for its business operations. Now, let's examine the assertion and reason individually.

Assertion (A): Prospectus contains complete information about the company and the manner in which the money is to be collected from the prospective investors.

This assertion is true. A prospectus is a comprehensive document that includes all relevant information about the company, such as its history, objectives, management team, financial statements, risks, and the terms and conditions of the offering. It also outlines the process through which the company intends to collect funds from prospective investors.

Reason (R): Because Prospectus is an invitation to the public that a new company has come into existence and it needs funds for doing business.

This reason is also true and provides a correct explanation for the assertion. A prospectus serves as an invitation to the public, signaling the formation of a new company and its need for funds to carry out its business activities. It is a means of attracting potential investors by providing them with the necessary information to make an informed decision about investing in the company.

Conclusion:
Both the assertion and reason are true, and the reason correctly explains the assertion. Therefore, the correct answer is option 'A' - Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).

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Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R):Assertion (A): Prospectus contains complete information about the company and the manner in which the money is to be collected from the prospective investors.Reason (R): Because Prospectus is an invitation to the public that a new company has come into existence and it needs funds for doing business.In the context of the above two statements, which of the following is correct?a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer?

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Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R):Assertion (A): Prospectus contains complete information about the company and the manner in which the money is to be collected from the prospective investors.Reason (R): Because Prospectus is an invitation to the public that a new company has come into existence and it needs funds for doing business.In the context of the above two statements, which of the following is correct?a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R):Assertion (A): Prospectus contains complete information about the company and the manner in which the money is to be collected from the prospective investors.Reason (R): Because Prospectus is an invitation to the public that a new company has come into existence and it needs funds for doing business.In the context of the above two statements, which of the following is correct?a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R):Assertion (A): Prospectus contains complete information about the company and the manner in which the money is to be collected from the prospective investors.Reason (R): Because Prospectus is an invitation to the public that a new company has come into existence and it needs funds for doing business.In the context of the above two statements, which of the following is correct?a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer?.

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