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Which one of the following is the CORRECT sequence of stages in the formation of a company?
- a)Promotion, incorporation, capital subscription, commencement of business
- b)Incorporation, capital subscription, promotion , commencement of business
- c)Promotion, commencement of business, incorporation , capital subscription
- d)Promotion, Incorporation, Certificate of commencement, capital subscription
Correct answer is option 'A'. Can you explain this answer?
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Which one of the following is the CORRECT sequence of stages in the fo...
Formation of a Company
The formation of a company involves a number of stages, which are as follows:
1. Promotion
The first stage in the formation of a company is promotion. It involves the process of identifying a business opportunity and taking the necessary steps to bring it to fruition. This involves the identification of a viable business idea, market research, and the development of a business plan.
2. Incorporation
Once the business idea has been developed and a business plan has been created, the next stage is incorporation. This involves the creation of a legal entity that is separate from its owners. The company is registered with the relevant authorities and a certificate of incorporation is issued.
3. Capital Subscription
After the company has been incorporated, the next stage is capital subscription. This involves the raising of funds required to start the business. This can be done through the sale of shares to investors, or through loans from financial institutions.
4. Commencement of Business
The final stage in the formation of a company is the commencement of business. This involves the start of operations as outlined in the business plan. This stage includes the hiring of employees, the acquisition of assets, and the production or provision of goods or services.
Correct Sequence of Stages
The correct sequence of stages in the formation of a company is as follows:
a) Promotion
b) Incorporation
c) Capital Subscription
d) Commencement of Business
Promotion comes first, followed by incorporation, capital subscription and finally the commencement of business. The process of promotion is important as it sets the foundation for the formation of the company. Without a viable business idea and a well-developed business plan, the company is unlikely to be successful. Incorporation is the legal process of creating the company, while capital subscription is the process of raising funds for the business. Finally, the commencement of business marks the start of operations as outlined in the business plan.
The formation of a company involves a number of stages, which are as follows:
1. Promotion
The first stage in the formation of a company is promotion. It involves the process of identifying a business opportunity and taking the necessary steps to bring it to fruition. This involves the identification of a viable business idea, market research, and the development of a business plan.
2. Incorporation
Once the business idea has been developed and a business plan has been created, the next stage is incorporation. This involves the creation of a legal entity that is separate from its owners. The company is registered with the relevant authorities and a certificate of incorporation is issued.
3. Capital Subscription
After the company has been incorporated, the next stage is capital subscription. This involves the raising of funds required to start the business. This can be done through the sale of shares to investors, or through loans from financial institutions.
4. Commencement of Business
The final stage in the formation of a company is the commencement of business. This involves the start of operations as outlined in the business plan. This stage includes the hiring of employees, the acquisition of assets, and the production or provision of goods or services.
Correct Sequence of Stages
The correct sequence of stages in the formation of a company is as follows:
a) Promotion
b) Incorporation
c) Capital Subscription
d) Commencement of Business
Promotion comes first, followed by incorporation, capital subscription and finally the commencement of business. The process of promotion is important as it sets the foundation for the formation of the company. Without a viable business idea and a well-developed business plan, the company is unlikely to be successful. Incorporation is the legal process of creating the company, while capital subscription is the process of raising funds for the business. Finally, the commencement of business marks the start of operations as outlined in the business plan.
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Which one of the following is the CORRECT sequence of stages in the fo...
A is correct.. Promotion : Planning and organising all the resources for establishing the company. Incorporation : Getting The company registered is a very long process, but vey essential and mandotary, Incorporation means giving live to company legally, after it company is a artificially legal person. It is Registered By Regitrar Of Company (ROC) Capital Subscription :It is a vital step. Thinking a business without finance is as like thinking life without food. It's either private or public company, both needs Capital Subscribed with in a due date ,if company fails to receive atleast 90% of capital of what shares are placed in market ,it can't be registered or commenced. (prospectus is prepaid for these step) . Commencement of Company; After doing all the above steps, tgis step is done, prepairing MoA and AoA are its part, before it company is not able to do any revenue work, it is the finale step, after which company can start to do it revenue work, it is established after this step.
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Which one of the following is the CORRECT sequence of stages in the formation of a company?a)Promotion, incorporation, capital subscription, commencement of businessb)Incorporation, capital subscription, promotion , commencement of businessc)Promotion, commencement of business, incorporation , capital subscriptiond)Promotion, Incorporation, Certificate of commencement, capital subscriptionCorrect answer is option 'A'. Can you explain this answer?
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Which one of the following is the CORRECT sequence of stages in the formation of a company?a)Promotion, incorporation, capital subscription, commencement of businessb)Incorporation, capital subscription, promotion , commencement of businessc)Promotion, commencement of business, incorporation , capital subscriptiond)Promotion, Incorporation, Certificate of commencement, capital subscriptionCorrect answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Which one of the following is the CORRECT sequence of stages in the formation of a company?a)Promotion, incorporation, capital subscription, commencement of businessb)Incorporation, capital subscription, promotion , commencement of businessc)Promotion, commencement of business, incorporation , capital subscriptiond)Promotion, Incorporation, Certificate of commencement, capital subscriptionCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which one of the following is the CORRECT sequence of stages in the formation of a company?a)Promotion, incorporation, capital subscription, commencement of businessb)Incorporation, capital subscription, promotion , commencement of businessc)Promotion, commencement of business, incorporation , capital subscriptiond)Promotion, Incorporation, Certificate of commencement, capital subscriptionCorrect answer is option 'A'. Can you explain this answer?.
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