State, whether the following statements are True or False.

Private placement method saves time and cost.

Open in App

Solution

True

Explanation: When the promoters of a public company are confident of raising capital through private sources, the company does not invite the general public to subscribe for shares instead the company promotes the private placement of shares to promoters, friends and other private sources. The company is not required to issue a prospectus. Also, no applications are invited for issue of shares. This saves time, cost and money.

Suggest Corrections

Similar questions

Speed = Distance \times time

State whether the following statements are true or false. If false, correct them.

(a) Plants consume oxygen for respiration.

State whether the following statements are true or false. If false, correct them.

(b) Plants produce oxygen during the process of making their own food.

State whether the following statements are true or false. If false, correct them.

State whether the following statements are true or false. If false, correct them.

(d) Air does not occupy any space.

Join BYJU'S Learning Program