Arrange the following stages of formation of companies in a proper sequence. 1. Promotion stage 2.…
The chronological sequence of stages in forming a public limited company under the Companies Act begins with the Promotion stage where promoters conceive the business idea…
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Arrange the following stages of formation of companies in a proper sequence.
1. Promotion stage
2. Raising of share capital stage
3. Incorporation stage
4. Commencement stage
5. Selection of name
Answer and explanation
Correct answer C
The chronological sequence of stages in forming a public limited company under the Companies Act begins with the Promotion stage where promoters conceive the business idea (1), followed by Selection and reservation of the company name with the Registrar (5), the Incorporation stage obtaining the Certificate of Incorporation (3), the Raising of share capital stage (2), and finally the Commencement of business stage (4).
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UGC NET Commerce