{"id":105579,"date":"2021-08-03T14:09:00","date_gmt":"2021-08-03T08:39:00","guid":{"rendered":"https:\/\/www.kopykitab.com\/blog\/?p=105579"},"modified":"2021-08-18T14:28:59","modified_gmt":"2021-08-18T08:58:59","slug":"ncert-solutions-for-class-11-business-studies-chapter-7","status":"publish","type":"post","link":"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-7\/","title":{"rendered":"Class 11 Business Studies NCERT Solutions for Chapter 7 2021"},"content":{"rendered":"\n<p><img class=\"alignnone size-full wp-image-107400\" src=\"https:\/\/www.kopykitab.com\/blog\/wp-content\/uploads\/2021\/07\/bs7.jpg\" alt=\"NCERT Solutions for Class 11 Business Studies Chapter 7\" width=\"1227\" height=\"690\" srcset=\"https:\/\/www.kopykitab.com\/blog\/wp-content\/uploads\/2021\/07\/bs7.jpg 1227w, https:\/\/www.kopykitab.com\/blog\/wp-content\/uploads\/2021\/07\/bs7-768x432.jpg 768w\" sizes=\"(max-width: 1227px) 100vw, 1227px\" \/><\/p>\n<p><b>NCERT Solutions for Class 11 Business Studies Chapter 7:<\/b><span style=\"font-weight: 400;\"> All NCERT answers for Class 11 Business Studies Chapter 7 can be found here. If you are a Class 11 student studying Business Studies with the NCERT Textbook, you will come across Chapter 7: Formation of a Company. You will be seeking answers to the lesson&#8217;s questions once you&#8217;ve finished studying it. NCERT Solutions for <a href=\"https:\/\/www.kopykitab.com\/Class-11-Business-Studies\" target=\"_blank\" rel=\"noopener\">Class 11 Business Studies<\/a> Chapter 7 Formation of a Company are available here.<\/span><\/p>\n<ul>\n<li><strong><a href=\"https:\/\/www.kopykitab.com\/blog\/cbse-class-11-business-studies-ncert-solutions\/\" target=\"_blank\" rel=\"noopener\">NCERT Solutions for Class 11 Business Studies<\/a><\/strong><\/li>\n<\/ul>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_47_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"ez-toc-toggle-icon-1\"><label for=\"item-69d372daf0943\" aria-label=\"Table of Content\"><span style=\"display: flex;align-items: center;width: 35px;height: 30px;justify-content: center;direction:ltr;\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/label><input  type=\"checkbox\" id=\"item-69d372daf0943\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-visibility-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-7\/#ncert-solutions-for-class-11-business-studies-chapter-7\" title=\"NCERT Solutions for Class 11 Business Studies Chapter 7\">NCERT Solutions for Class 11 Business Studies Chapter 7<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-7\/#download-class-11-business-studies-ncert-solutions-for-chapter-7-free-pdf\" title=\"Download Class 11 Business Studies NCERT Solutions for Chapter 7 Free PDF\">Download Class 11 Business Studies NCERT Solutions for Chapter 7 Free PDF<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-7\/#ncert-solutions-class-11-business-studies-chapter-7-important-concepts\" title=\"NCERT Solutions Class 11 Business Studies Chapter 7 | Important Concepts\">NCERT Solutions Class 11 Business Studies Chapter 7 | Important Concepts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-7\/#access-ncert-solutions-for-class-11-business-studies-chapter-7-%e2%80%93-formation-of-a-company\" title=\"Access NCERT Solutions For Class 11 Business Studies Chapter 7 \u2013 Formation of a Company\">Access NCERT Solutions For Class 11 Business Studies Chapter 7 \u2013 Formation of a Company<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-7\/#short-questions-for-ncert-business-studies-solutions-class-11-chapter-7\" title=\"Short Questions for NCERT Business Studies Solutions Class 11 Chapter 7\">Short Questions for NCERT Business Studies Solutions Class 11 Chapter 7<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-7\/#1-name-the-stages-in-the-formation-of-a-company\" title=\"1. Name the stages in the formation of a company.\">1. Name the stages in the formation of a company.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-7\/#2-list-the-documents-required-for-the-incorporation-of-a-company\" title=\"2. List the documents required for the incorporation of a company.\">2. List the documents required for the incorporation of a company.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-7\/#3-what-is-a-prospectus-is-it-necessary-for-every-company-to-file-a-prospectus\" title=\"3. What is a prospectus? Is it necessary for every company to file a prospectus?\">3. What is a prospectus? Is it necessary for every company to file a prospectus?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-7\/#4-briefly-explain-the-term-%e2%80%98return-of-allotment%e2%80%99\" title=\"4. Briefly explain the term \u2018Return of Allotment\u2019.\">4. Briefly explain the term \u2018Return of Allotment\u2019.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-7\/#5-at-which-stage-in-the-formation-of-a-company-does-it-interact-with-sebi\" title=\"5. At which stage in the formation of a company does it interact with SEBI?\">5. At which stage in the formation of a company does it interact with SEBI?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-7\/#long-questions-for-ncert-business-studies-solutions-class-11-chapter-7\" title=\"Long Questions for NCERT Business Studies Solutions Class 11 Chapter 7\">Long Questions for NCERT Business Studies Solutions Class 11 Chapter 7<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-7\/#1-what-is-meant-by-the-term-%e2%80%98promotion%e2%80%99-discuss-the-legal-position-of-promoters-with-respect-to-a-company-promoted-by-them\" title=\"1. What is meant by the term \u2018Promotion\u2019? Discuss the legal position of promoters with respect to a company promoted by them.\">1. What is meant by the term \u2018Promotion\u2019? Discuss the legal position of promoters with respect to a company promoted by them.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-7\/#2-explain-the-steps-taken-by-promoters-in-the-promotion-of-a-company\" title=\"2. Explain the steps taken by promoters in the promotion of a company.\">2. Explain the steps taken by promoters in the promotion of a company.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-7\/#3-what-is-a-%e2%80%98memorandum-of-association%e2%80%99-briefly-explain-its-clauses\" title=\"3. What is a \u2018Memorandum of Association\u2019? Briefly explain its clauses.\">3. What is a \u2018Memorandum of Association\u2019? Briefly explain its clauses.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-7\/#4-distinguish-between-%e2%80%98memorandum-of-association%e2%80%99-and-%e2%80%98articles-of-association%e2%80%99\" title=\"4. Distinguish between \u2018Memorandum of Association\u2019 and \u2018Articles of Association\u2019.\">4. Distinguish between \u2018Memorandum of Association\u2019 and \u2018Articles of Association\u2019.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-7\/#5-what-is-the-meaning-of-certificate-of-incorporation\" title=\"5. What is the meaning of Certificate\u00a0of Incorporation?\">5. What is the meaning of Certificate\u00a0of Incorporation?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-7\/#6-discuss-the-stages-of-formation-of-a-company\" title=\"6. Discuss the stages of formation of a company.\">6. Discuss the stages of formation of a company.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-7\/#access-other-chapters-ncert-solutions-of-class-11-business-studies-%e2%80%93\" title=\"Access Other Chapters NCERT Solutions of Class 11 Business Studies \u2013\u00a0\">Access Other Chapters NCERT Solutions of Class 11 Business Studies \u2013\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-7\/#faqs-on-class-11-business-studies-ncert-solutions-for-chapter-7\" title=\"FAQs on Class 11 Business Studies NCERT Solutions for Chapter 7\">FAQs on Class 11 Business Studies NCERT Solutions for Chapter 7<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-7\/#is-it-possible-to-view-chapter-7-while-offline\" title=\"Is it possible to view Chapter 7 while offline?\">Is it possible to view Chapter 7 while offline?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-7\/#name-the-stages-of-a-company%e2%80%99s-creation\" title=\"Name the stages of a company&#8217;s creation.\">Name the stages of a company&#8217;s creation.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-7\/#explain-the-term-%e2%80%9creturn-of-allotment%e2%80%9d-in-a-few-words\" title=\"Explain the term &#8220;return of allotment&#8221; in a few words.\">Explain the term &#8220;return of allotment&#8221; in a few words.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-7\/#where-can-we-get-the-pdf-for-ncert-solutions-for-class-11-business-studies-chapter-7\" title=\"Where can we get the PDF for NCERT Solutions for Class 11 Business Studies Chapter 7?\">Where can we get the PDF for NCERT Solutions for Class 11 Business Studies Chapter 7?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-7\/#what-does-it-cost-to-obtain-ncert-solutions-for-class-11-business-studies-chapter-7-pdf\" title=\"What does it cost to obtain NCERT Solutions for Class 11 Business Studies Chapter 7 PDF?\">What does it cost to obtain NCERT Solutions for Class 11 Business Studies Chapter 7 PDF?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"ncert-solutions-for-class-11-business-studies-chapter-7\"><\/span><b>NCERT Solutions for Class 11 Business Studies Chapter 7<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"https:\/\/www.kopykitab.com\/blog\/wp-content\/uploads\/2021\/07\/bs7.pdf\" target=\"_blank\" rel=\"noopener\">NCERT Solutions for Class 11 Business Studies Chapter 7<\/a><\/p>\n<div id=\"example1\" style=\"text-align: justify;\">\u00a0<\/div>\n<p style=\"text-align: justify;\"><style>\n.pdfobject-container { height: 500px;}<br \/>\n.pdfobject { border: 1px solid #666; }<br \/>\n<\/style><\/p>\n<p style=\"text-align: justify;\"><script src=\"https:\/\/www.kopykitab.com\/_utility\/js\/pdfobject.min.js\"><\/script><br \/><script>PDFObject.embed(\"https:\/\/www.kopykitab.com\/blog\/wp-content\/uploads\/2021\/07\/bs7.pdf\", \"#example1\");<\/script><\/p>\n<h2><span class=\"ez-toc-section\" id=\"download-class-11-business-studies-ncert-solutions-for-chapter-7-free-pdf\"><\/span><b>Download <\/b><strong>Class 11 Business Studies NCERT Solutions for Chapter 7 Free PDF<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: center;\"><a style=\"width: auto; padding: 18px; cursor: pointer; font-weight: bold; border-radius: 40px; color: #ffffff; background: #ff4500;\" href=\"https:\/\/www.kopykitab.com\/blog\/wp-content\/uploads\/2021\/07\/bs7.pdf\" target=\"_blank\" rel=\"noopener\">Click Here<\/a><\/p>\n<p><span style=\"font-weight: 400;\">Students can understand the concepts without any hassle. To understand the NCERT Solutions of Class 11 Business Studies and excel in their Business skills, you can download its PDF. The PDF is available both online and offline.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"ncert-solutions-class-11-business-studies-chapter-7-important-concepts\"><\/span><b>NCERT Solutions Class 11 Business Studies Chapter 7 | Important Concepts<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Finance for businesses<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Establishment of a business<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Promotion of a business<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Promoter&#8217;s Functions<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Documents that must be turned in<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Promoters&#8217; Position<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Incorporation<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The Certificate of Incorporation&#8217;s Impact<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Subscription of capital<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The start of the business<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Contracts that are still in the works<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Contracts on a temporary basis<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">NCERT Solutions for Business Studies in Class 11 Chapter 7 has a large number of instructive examples, which aids students in understanding and learning. The examples provided above are from the CBSE Class 11 curriculum.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"access-ncert-solutions-for-class-11-business-studies-chapter-7-%e2%80%93-formation-of-a-company\"><\/span>Access NCERT Solutions For Class 11 Business Studies Chapter 7 \u2013 Formation of a Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"short-questions-for-ncert-business-studies-solutions-class-11-chapter-7\"><\/span><strong>Short Questions for NCERT Business Studies Solutions Class 11 Chapter 7<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"1-name-the-stages-in-the-formation-of-a-company\"><\/span><strong>1. Name the stages in the formation of a company.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Following stages are there:<\/p>\n<p>1. Promotion: This step deals with idea generation and implementing it as a company.<\/p>\n<p>2. Incorporation: This stage consists of applying for the certificate of incorporation and obtaining the same, after the certificate is received a company becomes a valid entity in the books of law.<\/p>\n<p>3. Issuing of shares and debentures: This stage involves raising capital in the form of issuing stocks and debentures to the public.<\/p>\n<p>4. Business commencement: In this stage the formalities are completed and company commences business.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2-list-the-documents-required-for-the-incorporation-of-a-company\"><\/span><strong>2. List the documents required for the incorporation of a company.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Following documents are required to be submitted:<\/p>\n<p>1. MoA or Memorandum of Association<\/p>\n<p>2. AoA or Article of Association<\/p>\n<p>3. Director\u2019s approval confirming that they will be functioning as director and buy qualification shares.<\/p>\n<p>4. An agreement, with the managing director or someone who is going to be given the post of director.<\/p>\n<p>5. A letter from registrar containing approving the name of the company.<\/p>\n<p>6. A statutory declaration stating that all legal registration requirements have been complied<\/p>\n<p>7. A notice stating the exact address of office (it can also be submitted within 30 days of being incorporated)<\/p>\n<p>8. Payment evidence of registration fees in the form of a document.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3-what-is-a-prospectus-is-it-necessary-for-every-company-to-file-a-prospectus\"><\/span><strong>3. What is a prospectus? Is it necessary for every company to file a prospectus?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A prospectus is an invitation from a company to the general public informing about availability to purchase or subscribe shares and debentures issued by the company. IPO also known as Initial Public Offering and is a source of raising of funds from the public. But, in case of a private company, there is no need to file a prospectus as private companies are restricted from issuing IPO. A prospectus can be required if the aim is to generate funds from public. Private companies are not required to file a prospectus.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4-briefly-explain-the-term-%e2%80%98return-of-allotment%e2%80%99\"><\/span><strong>4. Briefly explain the term \u2018Return of Allotment\u2019.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A statement submitted to the Registrar containing names and address of shareholders with the number of shares that are allotted to each of them is called as Return of Allotment. It needs to be signed by the director or a secretary within 30 days of the allotment. It shows that the company has received the minimum necessary subscription.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5-at-which-stage-in-the-formation-of-a-company-does-it-interact-with-sebi\"><\/span><strong>5. At which stage in the formation of a company does it interact with SEBI?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The stage of capital subscription is that stage where a company needs to interact with Securities and Exchange Board of India (SEBI). The interaction is required because during this phase the company looks to raise capital from public by issuing shares and debentures. For issuing such shares the company has to follow rules set by SEBI, so it becomes essential to obtain approval from SEBI before issuing of shares or moving ahead with capital subscription.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"long-questions-for-ncert-business-studies-solutions-class-11-chapter-7\"><\/span><strong>Long Questions for NCERT Business Studies Solutions Class 11 Chapter 7<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"1-what-is-meant-by-the-term-%e2%80%98promotion%e2%80%99-discuss-the-legal-position-of-promoters-with-respect-to-a-company-promoted-by-them\"><\/span><strong>1. What is meant by the term \u2018Promotion\u2019? Discuss the legal position of promoters with respect to a company promoted by them.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The process of conceiving or developing an idea of business and taking the initial step towards converting it into a company so that the idea can be converted into a business project is called as promotion and the people who take those initial steps are known as promoters of the company.<\/p>\n<p>A promoter, apart from developing the business idea also needs to analyse the prospects in future and take necessary steps to fulfil the purpose. The promoter needs to arrange labour, machinery and capital. So here are some of the legal liabilities that a promoter has towards the company:<\/p>\n<p>1. A promoter is neither an agent nor a trustee of the company as prior to getting incorporated a company does not exist as a legal entity.<\/p>\n<p>2. Promoters cannot make secret profits by making deals acting on behalf of the organisation or company.<\/p>\n<p>3. The promoters can be held legally liable for any untrue statement that will be filed in the company prospectus.<\/p>\n<p>4. Expenses incurred by promoters during the promotion of the company cannot be claimed.<\/p>\n<p>5. The promoters are not may or may not be considered for payments before a company gets incorporated. Based on company\u2019s discretion they may be allotted shares to compensate for their exemplary services.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2-explain-the-steps-taken-by-promoters-in-the-promotion-of-a-company\"><\/span><strong>2. Explain the steps taken by promoters in the promotion of a company.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A promoter is that person who takes up the initiative of forming a company based on the business idea and takes the necessary steps to ensure the purpose is met. A promoter has the do the following things for promoting the company:<\/p>\n<p>1. Identifying the business opportunity: The first step for a promoter is to identify a business opportunity and then analyzing whether it is worth investing in.<\/p>\n<p>2. Checking the feasibility of the idea: The idea that came to mind might not be feasible enough so that it can be translated into a business. For this some detailed study should be done and for this following types of checks should be done:<\/p>\n<p>i. Technical feasibility: In some ideas the technical feasibility may be less, the reason for such can be the technology or the kind of raw material required for executing the project is not easily available. So this part needs to be taken care of.<\/p>\n<p>ii. Financial Feasibility: All the business require initial capital to get started and sustain in the market. Also the promoters need to determine the cost that need to be beared for implementing the idea. Therefore, if there is fund crunch and the project cost is humongous. Plan needs to be changed.<\/p>\n<p>iii. Economic feasibility: In some case the probability of success can be very low in spite of all other factors working in favor, that part also needs to be considered.<\/p>\n<p>3. Choosing company name: As soon as a decision to establish a company is taken, the promoters select a name for it. For getting the approval of the proposed name, application needs to be submitted to registrar of companies of the state. The application should contain three names in order of preference as the possibility of similar name may exist.<\/p>\n<p>4. Choosing members to sign MoA: A promoter needs to choose members who will sign the Memorandum of Association (MoA) and will become the directors of company.<\/p>\n<p>5. Selecting professionals: The promoters should hire professionals who will be preparing the necessary documents for the company, these professionals can be bankers, solicitors, brokers and underwriters.<\/p>\n<p>6. Getting documents ready: After all professionals are appointed, the promoter submits all the prepared documents to the registrar of companies.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3-what-is-a-%e2%80%98memorandum-of-association%e2%80%99-briefly-explain-its-clauses\"><\/span><strong>3. What is a \u2018Memorandum of Association\u2019? Briefly explain its clauses.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>One of the most essential document in the formation of a company is Memorandum of Association or MoA. It shows the main objectives of the company and its goals in the long term.<\/p>\n<p>The MoA regulates the incorporated company activities such that it can undertake activities that are mentioned in MoA. The number of persons signing the form varies as per the type of company (seven in case of public company while two members for private). The main clauses of MoA can be as follows<\/p>\n<p>1. Name: It should include the name of the company that has been approved by registrar of companies.<\/p>\n<p>2. Registered Office: The clause mentions address and name of company in which it is situated. Name giving is not mandatory, but it is essential to submit company name within 30 days of its incorporation.<\/p>\n<p>3. Objects clause: Most important clause while filling MoA is it defines the objectives for which a company is raised. Any activity cannot be undertaken that are not stated in objects clause. There are two types of object clause namely, main objects and other objects.<\/p>\n<p>4. Liability clause: This clause is all about liability of each shareholder as per amount invested by them or the shares they own.<\/p>\n<p>5. Capital Clause: It refers to the clause of raising authorized capital by issuing of shares<\/p>\n<p>6. Association clause: It contains the statement by those who sign the MoA and who accept MoA and also the consent of buying qualification shares.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4-distinguish-between-%e2%80%98memorandum-of-association%e2%80%99-and-%e2%80%98articles-of-association%e2%80%99\"><\/span><strong>4. Distinguish between \u2018Memorandum of Association\u2019 and \u2018Articles of Association\u2019.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div>\n<table>\n<tbody>\n<tr>\n<td><strong>Basis of Comparison<\/strong><\/td>\n<td><strong>(MoA)Memorandum of Association<\/strong><\/td>\n<td><strong>Articles of Association (AoA)<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Meaning<\/td>\n<td>It is a document that contain all essential information required for company incorporation.<\/td>\n<td>It is a document containing the rules and regulations of the company.<\/td>\n<\/tr>\n<tr>\n<td>Objectives<\/td>\n<td>Defines scope of activities and character of the company<\/td>\n<td>It defines rules and regulations of the company.<\/td>\n<\/tr>\n<tr>\n<td>Position<\/td>\n<td>Serves as the main document of the company and is subordinate to Companies Act<\/td>\n<td>A subsidiary document that is subordinate both to MoA and Companies Act<\/td>\n<\/tr>\n<tr>\n<td>Relationship<\/td>\n<td>Defines the relation between outsiders and the company<\/td>\n<td>Defines relation between company and its members<\/td>\n<\/tr>\n<tr>\n<td>Validity<\/td>\n<td>Acts that are beyond MoA cannot be ratified<\/td>\n<td>Acts that are beyond AoA can be ratified, if it does not violate MoA rules.<\/td>\n<\/tr>\n<tr>\n<td>Necessity<\/td>\n<td>Must for every company<\/td>\n<td>Not that important<\/td>\n<\/tr>\n<tr>\n<td>Alteration<\/td>\n<td>A statutory authority approval is necessary for altering MoA.<\/td>\n<td>Articles can be altered by passing a special resolution by the members.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<h3><span class=\"ez-toc-section\" id=\"5-what-is-the-meaning-of-certificate-of-incorporation\"><\/span><strong>5. What is the meaning of Certificate\u00a0of Incorporation?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A company becomes a legal entity by the date printed on Certificate of Incorporation. A company can go into valid contracts after the conclusiveness of certificate of incorporation. It acts as an evidence of legal existence of a company and regularity of the incorporation.<\/p>\n<p>A company becomes a legal entity once certificate of Incorporation is issued. A private company can immediately start business and raise funds from relatives, friends or through some arrangement and can start business, while a public company has to undergo two more steps to complete its formation.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"6-discuss-the-stages-of-formation-of-a-company\"><\/span><strong>6. Discuss the stages of formation of a company.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The following stages are there in the formation of a company:<\/p>\n<p>1. Promotion: This step deals with idea generation and implementing it in the form of a company.<\/p>\n<p>2. Incorporation: This stage consists of applying for the certificate of incorporation and obtaining the same, after the certificate is received a company becomes a valid entity in the books of law.<\/p>\n<p>3. Issuing of shares and debentures: This stage involves raising capital in the form of issuing stocks and debentures to the public.<\/p>\n<p>4. Business commencement: In this stage the formalities are completed and business are commenced by the company.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"access-other-chapters-ncert-solutions-of-class-11-business-studies-%e2%80%93\"><\/span><b>Access Other Chapters NCERT Solutions of Class 11 Business Studies \u2013\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">You can download the PDF of NCERT Solutions Class 11 Business studies for other Chapters:<\/span><\/p>\n<ul>\n<li><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-1\/\"><b>Chapter 1<\/b><\/a><\/li>\n<li><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-2\/\"><b>Chapter 2<\/b><\/a><\/li>\n<li><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-3\/\"><span style=\"font-weight: 400;\">Chapter 3<\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-4\/\"><span style=\"font-weight: 400;\">Chapter 4<\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-5\/\"><span style=\"font-weight: 400;\">Chapter 5<\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-6\/\"><span style=\"font-weight: 400;\">Chapter 6<\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-8\/\"><span style=\"font-weight: 400;\">Chapter 8<\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-9\/\"><span style=\"font-weight: 400;\">Chapter 9<\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-10\/\"><span style=\"font-weight: 400;\">Chapter 10<\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-11\/\"><span style=\"font-weight: 400;\">Chapter 11<\/span><\/a><\/li>\n<\/ul>\n<p><b>All the best to the students appearing for the Class 11th board exam. Here is the detailed blog of NCERT Solutions Class 11 Business Studies Chapter 7. For further queries regarding the <a href=\"https:\/\/www.cbse.gov.in\/\" target=\"_blank\" rel=\"noopener\">CBSE<\/a> Class 11th exam, you can ask in the comment box.\u00a0<\/b><\/p>\n<h2><span class=\"ez-toc-section\" id=\"faqs-on-class-11-business-studies-ncert-solutions-for-chapter-7\"><\/span><b>FAQs on <\/b><strong>Class 11 Business Studies NCERT Solutions for Chapter 7<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1626436475205\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"is-it-possible-to-view-chapter-7-while-offline\"><\/span><strong>Is it possible to view Chapter 7 while offline?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes, you may view Chapter 7 while you&#8217;re not connected to the internet<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1626436539518\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"name-the-stages-of-a-company%e2%80%99s-creation\"><\/span><strong>Name the stages of a company&#8217;s creation.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>1. Promotion: This phase entails coming up with a concept and putting it into action as a business.<br \/>2. Incorporation: This stage entails asking for and receiving a certificate of incorporation; once acquired, the certificate establishes the business as a legal entity.<br \/>3. Public issuance of stocks and debentures: This step entails obtaining funds through the public issuance of stocks and debentures.<br \/>4. Business start-up: At this point, the procedures are finished and the firm may start doing business.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1626436558131\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"explain-the-term-%e2%80%9creturn-of-allotment%e2%80%9d-in-a-few-words\"><\/span><strong>Explain the term &#8220;return of allotment&#8221; in a few words.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The Return of Allotment is a document filed to the Registrar that includes the names and addresses of shareholders as well as the number of shares issued to each of them. Within 30 days following the assignment, the director or a secretary must sign it. It demonstrates that the firm has got the bare minimum of subscriptions.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1626436588916\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"where-can-we-get-the-pdf-for-ncert-solutions-for-class-11-business-studies-chapter-7\"><\/span><strong>Where can we get the PDF for NCERT Solutions for Class 11 Business Studies Chapter 7?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>It&#8217;s available for download from the above article.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1626436601218\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"what-does-it-cost-to-obtain-ncert-solutions-for-class-11-business-studies-chapter-7-pdf\"><\/span><strong>What does it cost to obtain NCERT Solutions for Class 11 Business Studies Chapter 7 PDF?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>It is completely free.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>NCERT Solutions for Class 11 Business Studies Chapter 7: All NCERT answers for Class 11 Business Studies Chapter 7 can be found here. If you are a Class 11 student studying Business Studies with the NCERT Textbook, you will come across Chapter 7: Formation of a Company. You will be seeking answers to the lesson&#8217;s &#8230; <a title=\"Class 11 Business Studies NCERT Solutions for Chapter 7 2021\" class=\"read-more\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-7\/\" aria-label=\"More on Class 11 Business Studies NCERT Solutions for Chapter 7 2021\">Read more<\/a><\/p>\n","protected":false},"author":249,"featured_media":107400,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":""},"categories":[2934],"tags":[76318,3570,76237,76324],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts\/105579"}],"collection":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/users\/249"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/comments?post=105579"}],"version-history":[{"count":4,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts\/105579\/revisions"}],"predecessor-version":[{"id":113772,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts\/105579\/revisions\/113772"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/media\/107400"}],"wp:attachment":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/media?parent=105579"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/categories?post=105579"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/tags?post=105579"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}