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A public company cannot begin its operations until it has obtained a certificate of incorporation and a certificate to commence business. - Commercial Applications

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Question

A public company cannot begin its operations until it has obtained a certificate of incorporation and a certificate to commence business.

Options

  • True

  • False

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Solution

True

Explanation:

Before a public company may begin operations, it must first obtain a Certificate of Incorporation and then a Certificate of Commencement of Business from the Registrar. It cannot begin business activity when both are available.

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Chapter 4: Ownership Structures - Joint Stock Company - EXERCISES [Page 54]

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C. B. Gupta Commercial Applications [English] Class 9 ICSE
Chapter 4 Ownership Structures - Joint Stock Company
EXERCISES | Q I. 25. | Page 54
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