Business Studies

State with reasons whether the following statements are True or False:
A public company need not issue prospectus for raising capital. 


Answer & Solution

False


SOLUTION
(i) A prospectus usually is in the form of a statement giving all material information about the company and showing its future prospects. 
(ii) It aims at inviting investors to subscribe for its shares and debentures. 
(iii) It is a must for every public company to prepare its prospectus. 
(iv) It is through the prospectus that the prospective investors know details of the shares offered by the company. 
(v) Otherwise, the investors would have no idea of the shares that a public company is selling
(vi) All detailed information about a company like its business, management, financial structure etc. are provided in the prospectus. 
(vii) The main idea to issue a prospectus is to collect capital for the company from the general public. 
(viii) Although the main aim of the prospectus is to invite or attract investors towards the company still no mis-statement or false claim shall be made in it to deceive the investors. 
(ix) It should contain true, fair and correct information. 
(x) Hence, it is very necessary fora public company to issue a prospectus, as it has to collect its capital from the general public. 
View Answers

You're just one step away


TRUE/FALSE Medium Published on 18th 08, 2020
Next Question
Questions 244558
Subjects 8
Chapters 125
Enrolled Students 373
Enroll Now For FREE

Realted Questions

Q1 Single Correct Medium
A subsidiary of government company is also treated as a ___________. 
  • A. Government Company
  • B. Public Company
  • C. Private Company
  • D. All of the above

Asked in: Business Studies - Private, Public and Global Enterprises


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q2 TRUE/FALSE Medium
Success in a joint venture depends on comprehensive research and a detailed analysis of aims and objectives.
  • A. True
  • B. False

Asked in: Business Studies - Private, Public and Global Enterprises


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q3 Subjective Medium
Long Answer Type Questions: Can the public sector companies compete with the private sector in terms of profits and efficiency? Give reasons for your answer.

Asked in: Business Studies - Private, Public and Global Enterprises


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q4 Single Correct Medium
A board meeting can be held anywhere ___________.
  • A. True
  • B. False
  • C. Partly True
  • D. Partly False

Asked in: Business Studies - Private, Public and Global Enterprises


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q5 Single Correct Medium
Feature(s) of a public corporation is/are ____________________.
  • A. It can sue and be sued and can enter into contracts in its own name.
  • B. The public corporation is wholly owned by the Central and/or State Government(s).
  • C. It enjoys financial autonomy.
  • D. All of above

Asked in: Business Studies - Private, Public and Global Enterprises


1 Verified Answer | Published on 18th 08, 2020

View Answer