11th Class Business Studies Formation Of A Company

  • question_answer 5) A prospectus is issued by (a) a private company (b) a public company seeking investment from public (c) a public enterprise (d) a public company

    Answer:

    (b) for raising the required funds from the public by means of issue of shares and debentures, a public company has to issue a prospectus which is an invitation to the public to subscribe to the capital of the company and undergo various other formalities.

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