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Question

______ is a prerequisite to creation of a company.


A

Issuing preference shares

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B

Issuing equity shares

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C

Retaining earnings

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D

All of the above

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Solution

The correct option is B

Issuing equity shares


Issuing equity shares is a prerequisite to the creation of a company. When a company is formed it can issue shares to the public or to private individuals.


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