Tag: joint stock company 3 - promotion and formation of a company

Questions Related to joint stock company 3 - promotion and formation of a company

A company has separate legal status.

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. True

  2. False

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Correct Option: A
Explanation:

the principle of the separate legal personality of a company has become a vital part of company law.while the company legal relationships until that time had been principally based on transactions and activities between ‘natural’ or ‘real’ persons, namely human beings, from that time forward these legal relationships have been increasingly extended also to relations with company, as ‘legal’ personality. Thus, the principle of separate legal personality of a company has conjured up many practical as well as theoretical considerations about its application and correlated consequences

The Registration of a Joint Stock Company is _______.

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. Voluntary

  2. Compulsory

  3. optional

  4. None of these

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Correct Option: B
Explanation:

Registration of the company is optional not compulsory. One can start the business with other ways also rather than registering like acquiring tax license, service tax registration.

State the following statement is True or False:
It is the promoters who conceive the idea of a company.

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. True

  2. False

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Correct Option: A
Explanation:

True.

Promoters are the persons who conceive the idea of a company.
A promoter is a  person who does the preliminary work incidental to the formation of a company, including its promotion, incorporation, and flotation, and solicits people to invest money in the company, usually when it is being formed. 

State the following statement is True or False:
A promoter can be an individual or a company.

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. True

  2. False

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Correct Option: A
Explanation:

True

A promoter is a firm or person or company who does the preliminary work incidental to the formation of a company, including its promotion, incorporation, and flotation, and solicits people to invest money in the company, usually when it is being formed.

State the following statement is True or False:
Company promoters play significant role in the formation of a company.

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. True

  2. False

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Correct Option: A
Explanation:

True

Promoters play significant role in the formation of a company.Promoters are the persons who conceive the idea of business.
A corporate promoter is a firm or person who does the preliminary work incidental to the formation of a company, including its promotion, incorporation, and flotation, and solicits people to invest money in the company, usually when it is being formed.

Those who initiate formation of a company are called ___________.
business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. underwriters

  2. directors

  3. promoters

  4. None of these

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Correct Option: C
Explanation:

When an individual has an idea for a new business venture, he or she may set about interesting others in the venture and persuade them to contribute capital to a company to be incorporate for the purpose of carrying on the venture. The individual will then be described as ‘promoter’ of the company.

A __________ is a person, who discovers the business opportunity.
business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. secretary

  2. promoter

  3. shareholder

  4. director

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Correct Option: B
Explanation:

A promoter is a person who discovers the business opportunity. They are the people who conceives the idea of any business. They do all the work related to the incorporation, promotion, flotation and solicit people to invest the money in the company.

The applicants who are allotted shares will be sent ___________ letter.
business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. regret

  2. allotment

  3. enquiry

  4. request

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Correct Option: B
Explanation:

Share allotment letter is a document that details and confirms the amount or number of securities allotted to an applicant for a new issue or a rights issue.

A company must start it's business within ___________ of incorporation of company.
business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. one year

  2. nine months

  3. six months

  4. two years

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Correct Option: A
Explanation:

After the documents for incorporation are filed, the ROC calls the attorney on a specific date for scrutiny and making the corrections in the MOA and AOA filed. 

On complying with the same, the certificate of incorporation is granted to the attorney. After receiving incorporation letter company must start its business within one year from the date of A functional of incorporation letter.

The second stage in the formation of a company is _________.
business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. promotion

  2. capital raising

  3. incorporation

  4. registration

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Correct Option: C
Explanation:

Incorporation or registration is the second stage in the formation of a company. It is the registration that brings a company into existence. A company is properly constituted only when it is duly registered under the Act and a Certificate of Incorporation has been obtained from the Registrar of Companies.