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Business Studies

Promotion of a Company

A prospectus ...

Question

A prospectus is issued by

(a) A private company

(b) A public company seeking investment from public.

(c) A public enterprise

(d) A public company

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Solution

A prospectus is issued by a public company if it decides to raise funds through public investment. A private company need not issue a prospectus as it is prohibited from raising funds from the public.

Hence, the correct answer is option (d).

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