Grade 11 Exam > Grade 11 Questions > ___________ cannot give invitation to the pub...
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___________ cannot give invitation to the public to subscribe for any shares in or debentures of the company
- a)Subsidiary company
- b)Statutory Company
- c)Private company
- d)Registered company
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
___________ cannot give invitation to the public to subscribe for any ...
Explanation:
The correct answer is Private company. Here is a detailed explanation:
Private companies are not allowed to give an invitation to the public to subscribe for any shares in or debentures of the company. This means that they cannot publicly offer their shares or debentures for sale to the general public.
Here are some key points to understand:
- Subsidiary company: A subsidiary company is a company that is controlled by another company, known as the parent company. They can issue shares or debentures, but they are still subject to the regulations and restrictions imposed on private companies.
- Statutory Company: A statutory company is a company that is created by an Act of Parliament or other legislative authority. They can issue shares or debentures, but they may have specific rules and regulations regarding the invitation to the public.
- Registered company: A registered company is any company that is registered and incorporated under the Companies Act. They can issue shares or debentures, but they may have specific regulations and restrictions depending on their type (private or public).
In conclusion, only private companies cannot give an invitation to the public to subscribe for any shares in or debentures of the company.
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The correct answer is Private company. Here is a detailed explanation:
Private companies are not allowed to give an invitation to the public to subscribe for any shares in or debentures of the company. This means that they cannot publicly offer their shares or debentures for sale to the general public.
Here are some key points to understand:
- Subsidiary company: A subsidiary company is a company that is controlled by another company, known as the parent company. They can issue shares or debentures, but they are still subject to the regulations and restrictions imposed on private companies.
- Statutory Company: A statutory company is a company that is created by an Act of Parliament or other legislative authority. They can issue shares or debentures, but they may have specific rules and regulations regarding the invitation to the public.
- Registered company: A registered company is any company that is registered and incorporated under the Companies Act. They can issue shares or debentures, but they may have specific regulations and restrictions depending on their type (private or public).
In conclusion, only private companies cannot give an invitation to the public to subscribe for any shares in or debentures of the company.
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___________ cannot give invitation to the public to subscribe for any shares in or debentures of the companya)Subsidiary companyb)Statutory Companyc)Private companyd)Registered companyCorrect answer is option 'C'. Can you explain this answer?
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