Those who initiate formation of a company are called ___________.

underwriters

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directors

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promoters

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None of these

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Solution

The correct option is B promoters
When an individual has an idea for a new business venture, he or she may set about interesting others in the venture and persuade them to contribute capital to a company to be incorporate for the purpose of carrying on the venture. The individual will then be described as ‘promoter’ of the company.

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Similar questions

The person who purchases the shares of a company is called a ____.

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