Formation of a company is a chapter that is outlined to explain about how is a company formed. This chapter is incorporated with many concepts – introduction to the topic – formation of a company, promotion of a company, functions of a promoter, name clause, documents required to be submitted, articles of association, association clause, position of promoters, qualification of shares, incorporation, preliminary contracts, effect of the certificate of incorporation, capital subscription, provisional contract, commencement of business. Students have to comprehend these concepts, learn and revise them. For more revision notes, students can refer to the revision notes provided for the Chapter 7 – Formation of a Company.
Students can refer to :
|NCERT Solutions For Class 12 Business Studies
|NCERT Solution for Class 12 Business Studies Chapter 1 – Nature and Significance of Management
Frequently asked Questions on CBSE Class 11 Business Studies Notes Chapter 7: Formation of a Company
What is an ‘association clause’?
The association clause explains that any individual signing the bottom of the MOA wants to be part of the association that’s being formed by the memorandum.
What is ‘capital subscription’?
Capital Subscription: A public company can raise the required funds from the public means of Issue of shares and debentures.
What is ‘provisional contract’?
Preliminary contracts are the contracts, which are made before the formation of the company.