08-05-2014, 10:45 AM
FORMATION OF A COMPANY
A COMPANY[.ppt (Size: 405 KB / Downloads: 180)
FORMATION OF A COMPANY
A joint stock company does not come into existence on its own.
Planned action and conscious efforts are required for its formation.
It involves several legal formalities.
Meaning of promotion
The term promotion refers to the sum total of activities by which a business enterprise is brought into existence.
Definition
According to C.W Gerstenberg,
“ Promotion is the discovery of business opportunities and the subsequent organization of funds, property and management ability into business concern for the purpose of making profit there from”
STAGES IN PROMOTION
The Business preposition is presented to the public in the form of a “prospectus”
In order to persuade them that it deserves their financial support.
Agreements are made with underwriters. stock brokers,bankers,etc..
4 Financing of preposition:
At this stage, financial plans are prepared with respect to capitalisation,capital structure, time and method of capital issue,etc.
The financial requirements are estimated and the sources from which the money will come are decided.