BUSINESS ADMINISTRATION
ENTREPRENEURIAL DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Registration of firm
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Applying for Loan
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Giving over a percentage of the company for purchase by the public in the form of shares.
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None of the above
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Detailed explanation-1: -Flotation is the process of converting a private company into a public company by issuing shares available for the public to purchase. It allows companies to obtain financing externally instead of using retained earnings to fund new projects or expansion.
Detailed explanation-2: -The SME platform of the Exchange is intended for small and medium sized companies with high growth potential. The SME platform of the Exchange shall be open for SMEs whose post issue paid up capital shall be less than or equal to Rs. 25 crores.
Detailed explanation-3: -A flotation is also known as an Initial Public Offering (IPO) or a new issue. It marks the first time a company sells shares to the public. An IPO may occur because smaller companies are looking to raise money to expand.
Detailed explanation-4: -An SME IPO means the process through which small and medium-sized companies go public and raise capital from the general public. The mainline IPO is generally for bigger companies to sell their shares in the market.