BUSINESS ADMINISTRATION
ENTREPRENEURIAL DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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takes part in the incorporation of a company .
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is a director
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is a relative of the managing director.
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works to publicity to the company.
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Detailed explanation-1: -Promoter is a person who takes part in the incorporation of a company. A promoter is the one, who undertakes to form a company with reference to a given object and sets it going and takes the necessary steps to accomplish that purpose.
Detailed explanation-2: -A corporate promoter is a firm or person who does the preliminary work related to the formation of a company, including its promotion, incorporation, and flotation, and solicits people to invest money in the company, usually when it is being formed.
Detailed explanation-3: -A Promoter is a person who is engaged in promoting the formation and incorporation of the Company. He conceives the idea of setting up the business and took the steps for the formation of the Company. However, the persons who assist in the incorporation of the company are the Professionals and not the promoters.
Detailed explanation-4: -In corporate law, a promoter is the founder or organizer of a corporation or business venture; the person who takes the initiative to create or organize a business. The term is mostly used in the context of incorporation. A promoter would perform the conduct required for incorporating the business venture.
Detailed explanation-5: -Promoters are not the trustees or agents of the company. They behave in a fiduciary capacity for the company. They take actions and activities to create the company and pay the preliminary costs related to its incorporation, such as stamp duty, registration and professional fees.