Formation of a Company
Class 11 · Business Studies
4 ideas in Class 11 Business Studies, explained in plain words, with games and quizzes to practise.
Promotion Stage
Part of: Promotion and Incorporation
Promoters spot ideas, test feasibility, assemble resources, name company, prepare documents.
Why it matters. Ideas shaped. Risks tested.
Key words
- Promoter
- : The person spotting the idea and assembling resources for a company.
- Feasibility
- : The testing of whether a business idea can work and pay.
- Company name
- : The approved identity under which a firm gets registered.
- Promotion documents
- : The early papers preparing the company for registration.
Try it in two minutes
- Spot the idea.
- Test feasibility.
- Assemble resources.
Try at home. Pitch an idea.
MOA and AOA
Part of: Promotion and Incorporation
Memorandum defines charter: name, office, objects, liability, capital; Articles govern internal rules; both filed for registration.
Why it matters. Charter bounds. Rules guide.
Key words
- Memorandum
- : The charter defining a company's name, office, objects, liability and capital.
- Articles
- : The internal rules governing a company's management.
- Objects clause
- : The memorandum part stating what business the company may do.
- Liability clause
- : The memorandum part stating how far members must pay.
Try it in two minutes
- Draft memorandum.
- Draft articles.
- File for registration.
Try at home. Compare charter, rules.
Capital Subscription
Part of: Subscription and Start
Public companies invite subscriptions via prospectus; minimum subscription, allotment, returns filed; private firms skip public.
Why it matters. Funds raised legally. Investors informed.
Key words
- Prospectus
- : The public invite asking investors to subscribe to shares.
- Minimum subscription
- : The least capital that must be raised before allotment.
- Allotment
- : The grant of shares to applicants after a valid public issue.
- Private placement
- : Raising capital privately, skipping the public issue route.
Try it in two minutes
- Issue prospectus.
- Collect applications.
- Allot shares.
Try at home. Read an IPO note.
Incorporation and Commencement
Part of: Subscription and Start
Registrar issues incorporation on filing; public firms then need commencement certificate after capital, directors, consent proofs.
Why it matters. Birth certified. Trading allowed.
Key words
- Incorporation
- : The registrar's birth certificate giving a company legal life.
- Certificate of commencement
- : The permit letting a public firm start trading after capital proofs.
- Registrar
- : The officer issuing incorporation on proper filing.
- Director consent
- : The filed proof that named directors agree to serve.
Try it in two minutes
- File documents.
- Gain incorporation.
- Earn commencement.
Try at home. List certificates needed.
What your child will practise
- Capital Subscription: Jungle Puzzle (Clue Puzzle)
- Capital Subscription: Jungle Quick Fire (Quick Fire)
- Incorporation and Commencement: Candy Puzzle (Clue Puzzle)
- MOA and AOA: Ocean Quest (Flip and Match)
- Promotion Stage: Space Quick Fire (Quick Fire)
- Quiz: Capital Subscription (8 questions)
- Quiz: Incorporation and Commencement (8 questions)
- Quiz: MOA and AOA (8 questions)
- Quiz: Promotion Stage (8 questions)