DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : R. Dasharatham
Destination : Lecturer
Branch : DCCP
Institute : GPW, Warangal
Year/Semester : I Year
Subject : Business Organization
Subject Code : CCP104
Topic : Forms of a Joint Stock Company
Duration : 50 Mts
Sub Topic : Promotion for a JSC Stages-Part-I
Teaching Aids : PPTs and Animation
CCP104.44 1
Objective :

On completion of this period the student

will be able to explain:
 Stages in the Promotion for Formation of a
JSC

CCP104.44 2
Recap :

In the Previous Class, we have discussed

about:
 Introduction to the formation of Joint
Stock Company
 What is a Promotion
 Promoter and their types

CCP104.44 3
 COMPANY FORMATION

II. LEGAL ASPECT

I. BUSINESS
ASPECT
1. PROMOTION 3. PROSPECTUS
2. INCORPORATION
A. DISCOVERY OF
NEW IDEA

B. ASSEMBLING A. MEMORANDUM OF B. ARTICLES C. D.

ASSOCIATIONN OF WRITTEN NO
ASSOCIATION CONSENT TI
C. PREPARATION CE
OF FINAL PLAN

4. COMMENCEMENT CERTIFICATE

CCP104.44 4
Stages in the Promotion of A Joint
Stock Company :

As shown in the chart above, the following are the

various Stages:
 Discovery of business opportunities
 Assembling
 Preparation of a financial plan or financing
the proposition

CCP104.44 5
Discovery of Business
Opportunities :

 A person or persons get idea

 That there is possibility of starting a new
business
 To tap natural resources
 Discover New invention
 Discovery begins

CCP104.44 6
Stages in the Promotion of A Joint
Stock Company :
 Idea to supply a product
 At lower price
 To break Monopoly
 To expand partnership into Limited Co.
 To combine some concerns

CCP104.44 7
Stages in the Promotion of A
Joint Stock Company :
Discovery of an idea will mean the following
steps:
 Conception of an idea
 Investigation
 Verification

CCP104.44 8
Conceiving an Idea :
 Understanding the possibility of starting a
business
 Develops the idea with the help of technical
experts

CCP104.44 9
Investigation :
Detailed examination of feasibility regarding
 Sources of supply
 Demand
 Competition
 Capital required

CCP104.44 10
Investigation:

For this purpose, promoters have to acquire the

services of experts
 The experts like engineers, valuers,
accountants, statisticians, marketing experts etc

CCP104.44 11
Investigation:
Prepare a report on market position
 Potential Competition
 Amount required for fixed amounts
 Whether the idea is commercially feasible or not

CCP104.44 12
 Investigation:

 Availability of raw material

 Labour
 Transport facilities
 Other relevant items of expenditure

CCP104.44 13
Verification :

 Report submitted by investigators

 Verified by a team of experts

CCP104.44 14
Verification:
Mistakes may occur in report regarding:
 Prejudice of investigation
 Collection of data form wrong source
 Wrong interpretation of data

CCP104.44 15
Summary :

We have discussed about

 Discovery of Business opportunities
 Conception of an Idea
 Investigation
 verification

CCP104.44 16
Quiz :

1. What does Discovery of Business

opportunities mean?
a) Getting idea
b) Getting finance
c) Purchasing fixed assets
d) none

CCP104.44 17
1. After the report submitted by the investigators
who will verify
a) Auditors
b) Promoter
c) A team of experts
d) Advocates

CCP104.44 18
Frequently Asked Questions :

1. List out various stages in the

promotion of a Joint Stock Company?
2. What is an Investigation?

CCP104.44 19
Assignment :

1. Briefly explain the meaning of Verification?

2. What are the different stages of promotion?

CCP104.44 20