Business Studies · Ch 7 — Formation of a Company
Key Terms
Key Terms
- Promotion — the first stage of forming a company: conceiving a business idea, testing its feasibility, and taking the initiative to get the company registered.
- Memorandum of Association (MOA) — the company's principal document, defining its objectives and its relationship with outsiders; contains the name, registered office, objects, liability and capital clauses.
- Articles of Association (AOA) — the rules for the internal management of the company, subsidiary to the Memorandum.
- Prospectus — a document inviting the public to subscribe to or purchase a company's securities (or to make deposits).
- Incorporation — the stage at which the Registrar, after scrutiny, issues the Certificate of Incorporation, giving the company legal existence.
- Capital subscription — the stage in which a public company raises funds from the public by issuing securities. …