Question

Which describes the process of how a business incorporates? The business must gain government permission and issue a stock sale, followed by a shareholder vote. The business must issue a stock sale and take a shareholder vote, followed by government permission. The business must take a shareholder vote and gain government permission, followed by a stock sale. The business may gain government permission, followed by writing a charter to shareholders and issuing a stock sale.Which describes the process of how a business incorporates?

Answer 1

Answer:

refer the attachment

Explanation:

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Answer 2

Concept:

A company is an artificial person which comes into existence only after its registration with the Registrar Of Companies. To make a company a separate legal entity, there is a legal process which is to be followed. After all the necessary documents are filed and verified by the Registrar, the registrar issues the certificate of incorporation and on that day the company becomes a separate legal entity.

Explanation:

The Incorporation of a Company involves the following steps-

1. Application for Approval of name

2. Preparation of Memorandum Of Associations

3. Preparation of Articles of Association

4. Preparation of Other Documents

5. Payment of Fees

6. Incorporation Certificate

7. Capital Subscription

The Capital Subscription stage further involves the Following-

I. SEBI Approval

II. Filing of prospectus

III. Appointment of Bankers, brokers, underwriters

IV. Minimum Subscription

V. Application of Stock Exchange

VI. Allotment of shares

8. Commencement of Business

From the above explanation we can conclude that,

The business may gain government permission, followed by writing a charter to shareholders and issuing a stock sale.

Hence the option D is the correct option.

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