Question

Needs and importance of profit prior to incorporation

Answer 1

Profit prior to incorporation" is theprofit earned or loss suffered during the period before incorporation. It is a capital profit and is not legally available for distribution as dividend because a company cannot earn aprofit before it comes into existence

Answer 2

Answer:

The “Profit prior to incorporation" can be the profit that is earned or loss that is suffered during that period before the incorporation.

It can be the capital profit and legally is not available to distribute as the dividend.

The company cannot earn any profit before it comes into the existence.  

Incorporation cannot be the inclusion of anything as the part of whole.