Question

Select the option from the option choices given in below and re-write the completed sentences:

A _________ company must issue prospectus to the public for capital subscription.

• A. statutory
• B. private
• C. public
• D. government

Answer 1

The correct option is C public

Prospectus is a detailed statement that must be issued by a company that goes public. It is an invitation to the member of the public. It includes any notice, circular, advertisement inviting deposits from the public. Hence, a public company must issue prospectus to the public for capital subscription.