Two partners want to start a new firm so they issue a prospectus. Are they on the right track?

Yes, cause the partners need to form a prospectus.

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No, cause partners do not need to form a prospectus.

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Partners do require a prospectus to go ahead with the business.

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None of the above

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Solution

The correct option is C
No, cause partners do not need to form a prospectus.

No, they don't require a prospectus.

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Similar questions

Mr. Sahil and Mr. Rajesh are promoting a new company. They are not able to decide on how to raise funds. Sahil is interested in a new issue through the prospectus, while Rajesh wants a rights issue. As a financial manager, suggest the appropriate step to Sahil and Rajesh.

Q. Mark the following statements True or False:
(a) A private company must file a statement in lieu of prospectus.
(b) A company which does not want to prepare its own Articles of Association can adopt Table A.
(c) A company wanting to raise capital must issue a prospectus.
(d) A private company can start its business immediately after incorporation.
(e) Capital clause is a part of the Articles of Association.
(f) The Memorandum of Association defines the relationship of a company with or outsiders.
(g) Every company must issue a prospectus to raise share capital.

Is it essential for a private company to issue a prospectus or a statement in lieu of prospectus? Why or why not?

Q. Define Prospectus. What are the legal provisions for the issue of a prospectus.

State with reasons whether the following statements are True or False:

A public company need not issue prospectus for raising capital.

Two partners want to start a new firm so they issue a prospectus. Are they on the right track?

The correct option is C No, cause partners do not need to form a prospectus. No, they don't require a prospectus.

The correct option is C
No, cause partners do not need to form a prospectus.

No, they don't require a prospectus.