NCERT Solutions for Class 11 Business_Studies Chapter 7 Formation of a Company

Formation of Company: There are two stages in the formation of the private company, promotion and incorporation. A public company has to undergo capital subscription stage and to the get certificate of commencement of business, to begin operation. Formation of a company is a chapter that is outlined to explain how a company is formed. This chapter is incorporated with many concepts – introduction to the topic – formation of a company, promotion of a company, functions of a promoter, name clause, documents required to be submitted, articles of association, association clause, the position of promoters, qualification of shares, incorporation, preliminary contracts, the effect of the certificate of incorporation, capital subscription, provisional contract, the commencement of business.