1. Explain what do you mean by Promotion ?
Ans. It begins with a potential business idea. Certain feasibility studies e.g. technical, financial and economic, are conducted to determine whether the idea can be profitably exploited. In case, the investigations yield favorable results, promoters may decide to form the company, take necessary steps for the same, and assume associated risks, are called promoters.

2. What are the steps in promotion ?
Ans.  1. Approval of company's name is taken from the Registrar of companies.
         2. Signatories to the Memorandum of Association are fixed.
         3. Certain professionals are appropriated to assist the promoters.
         4. Documents necessary for registration are prepared.
3. What are the necessary documents needed for promotion ?
Ans.  a. Memorandum of Association
         b. Articles of Association
         c. Consent of proposed directors
        d. Agreement, if any, with proposed managing or whole time director.
        e. Statutory declaration.

4. What do you mean by Incorporation ?
Ans. An application is made by promoters to the Registrar of companies along with necessary documents and registration fees. The Registrar, after due scrutiny, issues certificate of incorporation. The registration may be refused only in case of a major defect in the documents. The certificate of incorporation is a conclusive evidence of the legal existence of the company. Even if there has been a major defect in the incorporation, legal existence of the company can not be rejected.

5. What do you mean by Memorandum of Association ?
Ans. Memorandum of Association is the most important document as it defines the objectives of the company. No company can legally undertake activities that are not contained in its Memorandum of Association. The Memorandum of Association contain different clauses.

6.Explain about what is the Name clause ?
Ans. This clause contains the name of the company with which the company will be known which has already been approved by the Registrar of companies.

7. Explain about What is the Registered office clause ?
Ans. This clause contains the name of the state, in which the registered office of the company is proposed to be situated . The exact address of the registered office is not required at this stage but the same must be notified to the Registrar within thirty days of the incorporation of the company.

8. Explain about the Objects clause ?
Ans. This is probably the most important clause of the memorandum. It defines the purpose for which the company is formed. A company is not legally entitled to undertake an activity, which is beyond the objects stated in this clause.

9. Explain about the Association clause?
Ans. In this clause, the signatories to the Memorandum of Association state their intention to be associated with the company and also give their consent to purchase qualifications shares.

10.Explain about the Liability clauses ?
Ans. This clause limits the liability of thee members to the amount unpaid on the shares owned by them.