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.