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Formation of a Company — Business Studies STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceBusiness StudiesFormation of a Company1 Mark
Question
True/False Answer Questions.
A company can commence business after incorporation.
✓

Answer

False.
Not every company can start its business after incorporation. On the issue of Certificate of Incorporation, a private company can immediately commence its business. It can raise necessary funds from friends, relatives or through private arrangement and proceed to start business.

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