CameraIcon

SearchIcon

MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

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

Open in App

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).

Suggest Corrections

thumbs-up

10

Similar questions

Q. When there is a conversion of a private company into a public company ________ prospectus must be issued.

Statement in lieu of prospectus can be filed by a public company going for a public issue.

Q. Company should file a prospectus in case of conversion of private company into a public company with in _________ from the date of resolution passed

Q. State whether the following statements are True or False.
(a) There is no chartered company in India.
(b) LIC is a statutory company.
(c) At least five persons are needed to form a public company.
(d) The minimum paid up capital of a private company must be Rupees five lakh.
(e) A private company can invite public deposits.
(f) The shares of a public company are transferable.
(g) A subsidiary of a public company is also a public company.
(h) The concept of private company deemed to be public no longer exists in India.

Q. Public company having share capital which has not issued a prospectus of the company has to file a ___________ before its commencement.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Promotion

BUSINESS STUDIES

Watch in App

explore_more_icon

Explore more

Promotion of a Company

Standard XI Business Studies

Join BYJU'S Learning Program

CrossIcon