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Name the stages in the formation of a company.

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Question

Name the stages in the formation of a company.

Short/Brief Note
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Solution

The formation of a company is a complex process which involves various stages. The following are the sequential stages.

(a) Promotion: This involves taking the initiative to form a company and promoting it.

(bIncorporation: This step involves the formation of the company as a separate legal entity.

(c) Subscription of capital: In this stage, funds are raised in the form of shares and debentures.

(d) Commencement of business: This stage implies the completion of the formalities and the commencement of business by the company.

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Formation of a Company
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Chapter 7: Formation of a Company - Short Answers [Page 180]

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NCERT Business Studies [English] Class 11
Chapter 7 Formation of a Company
Short Answers | Q 1 | Page 180

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