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Question

The second stage in the formation of a company is _________.

A
promotion
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B
capital raising
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C
incorporation
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D
registration
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Solution

The correct option is B incorporation
Incorporation or registration is the second stage in the formation of a company. It is the registration that brings a company into existence. A company is properly constituted only when it is duly registered under the Act and a Certificate of Incorporation has been obtained from the Registrar of Companies.

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