Question

Pargati is hired to conduct financial feasibility of a project. Whether She will be termed as a

promoter ? Why ?​

Answer 1

Financial feasibility is a function of a promoter.

$\bf\ Promoter :$

A promoter is the one who undertakes to form a company with reference to a given project and who takes the necessary steps to accomplish the purpose.

A person or a group of persons or a company proceeds to form a company , then they are said to be promoters of the company.

$\bf\ Functions \: of \: a \: Promoter :$

• Identification of Business opportunity

The first and foremost function of a promoter is to identify the business opportunity. The opportunity may be production of a new product or a service.

• Feasibility studies :

Feasibility studies meant that if it may not be feasible or profitable to convert all identified business opportunities to desired outputs. The feasibility studies are of 3 types; Technical feasibility , economic feasibility , and financial feasibility.Financial Feasibility : Every business activity requires fund . The promoters have to estimate the fund requirements for the identified business.

• Name Approval :

The promoters have to select a name for the incorporation of the company and submit an application to the registrar of companies in which the registered office of company is to be situated.

• Fixing up Signatories :

Primoters have to decide the signatories or members who will be signing the memorandum of association of the proposed Company.

• Appointment of Professionals :

The promoters have to appoint the certain professionals like auditors, bankers to assist him in preparation of necessary documents.

• Preparation of Necessary documents :

The promoter have to prepare certain legal documents which have to be submitted under the law to the registrar of the comapny.