Incorporation of Company — SPCC STD 11 Commerce — Question

The pre-installation phase includes the following:
1. The Idea for the Promotion of a Business / Company:

• The idea of ​​establishing a business in the form of a company arises from an individual or a group of individuals.
• Thus the concept leads to the establishment of the business.
• This re-planting of the founder is nurtured by his imagination and creativity.
• The company comes into being when it is willing to take risks and mobilize manpower as well as goods to do business.
• That is why the company is called the son of the promoter.

2. Primary Investigation:

• The possibilities of conceptualization are explored by experts.
• Estimates of income and expenses are made and a close check is made if the result is satisfactory.

3. Extensive Investigation:

• The opposite can happen if a detailed investigation is not carried out.
• Government policy, legal restrictions, availability of raw materials, demand and supply status, convenience of support services, etc. are examined and investigated.
• A detailed investigation makes the picture clear and decides whether to proceed or drop the plan.

4. Mobilizing Resources:

• Correspondence, contracts and other necessary formalities are done to manage the necessary resources like machinery, equipment, land etc. when the decision is taken to proceed with the project.

5. Arrangement of Finance:

• Financial considerations are taken into account in the acquisition of equipment or property and the necessary costs of installation.