1.
What is a company?
2.
Write down four characteristics of a company.
3.
Explain how companies are formed.
4.
What types of companies are there?
5.
What is a memorandum of association?
6.
What are the articles of association?
7.
What are preliminary expenses?
8.
Define the term "promotion."
9.
What is share capital?
10.
What are calls in arrears?
Formation and Organization Q&A FAQs
Forming a company involves completing legal formalities and procedures. The formalities can be broken down into three stages: promotion, incorporation, and the subscription of capital.
Formation of an organization takes place in four stages: promotion, incorporation, capital subscription, and commencement of business.
A business that primarily pursues profit is called a company. An organization works for the greater good and has a common shared purpose. A business can form part of an organization, but an organization is not just a business; it is so much more.
There are a number of business organization types, including sole proprietorship, Partnership, corporation, and Limited Liability Company (LLC).
The process of organizing creates a framework for reaching a company's objectives and goals. Organizing is the process of defining and grouping activities, and establishing authority relationships among them to attain organizational objectives.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.
