Multiple choice

Which of the following is not a stage in the formation of any type of company?

  1. Promotion

  2. Floatation

  3. Incorporation

  4. Issuing of prospectus

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

 Issuing of prospectus is not a stage of formation of a company. A company issues prospectus only after it is formed. Secondly only the public company issues prospectus to raise its capital from the public. Private company does not issue prospectus.

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