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    Entrepreneurship Development

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    krittika19
    The document discusses the promotion of a venture from two viewpoints: establishment and expansion. It defines promotion of a venture as discovering business opportunities and organizing funds, property, and management to establish an enterprise. Promoters are individuals or institutions that take the initiative to set up new businesses by procuring necessary funds. There are professional and occasional promoters. The functions of promoters include conceiving an idea, conducting negotiations, drafting legal documents, arranging financing and registration, and defraying preliminary expenses. Promoters have duties to disclose all material facts and financial details and can be held personally liable for misstatements.

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    Entrepreneurship Development

    Uploaded by

    krittika19
    260 views10 pages
    The document discusses the promotion of a venture from two viewpoints: establishment and expansion. It defines promotion of a venture as discovering business opportunities and organizing funds, property, and management to establish an enterprise. Promoters are individuals or institutions that take the initiative to set up new businesses by procuring necessary funds. There are professional and occasional promoters. The functions of promoters include conceiving an idea, conducting negotiations, drafting legal documents, arranging financing and registration, and defraying preliminary expenses. Promoters have duties to disclose all material facts and financial details and can be held personally liable for misstatements.

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    The document discusses the promotion of a venture from two viewpoints: establishment and expansion. It defines promotion of a venture as discovering business opportunities and organizing funds, property, and management to establish an enterprise. Promoters are individuals or institutions that take the initiative to set up new businesses by procuring necessary funds. There are professional and occasional promoters. The functions of promoters include conceiving an idea, conducting negotiations, drafting legal documents, arranging financing and registration, and defraying preliminary expenses. Promoters have duties to disclose all material facts and financial details and can be held personally liable for misstatements.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    260 views10 pages

    Entrepreneurship Development

    Uploaded by

    krittika19
    The document discusses the promotion of a venture from two viewpoints: establishment and expansion. It defines promotion of a venture as discovering business opportunities and organizing funds, property, and management to establish an enterprise. Promoters are individuals or institutions that take the initiative to set up new businesses by procuring necessary funds. There are professional and occasional promoters. The functions of promoters include conceiving an idea, conducting negotiations, drafting legal documents, arranging financing and registration, and defraying preliminary expenses. Promoters have duties to disclose all material facts and financial details and can be held personally liable for misstatements.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 10

    Entrepreneurship

    Development
    BBA- IVth Semester
    Promotion of a Venture
    Meaning (What do you understand/mean by promotion of a Venture?)
    Promotion of a venture means conceiving an idea about the
    establishment of a business enterprise and finding out the business
    opportunities and translate ideas into reality.

    Definition
    Promotion of a venture means discovery of business opportunities and
    organising and planning of funds, property and managerial ability for
    the establishment of a business enterprise.
    Promotion of a Venture
    • Promotion of a Venture is considered from two view points.

    From the view point of incorporation or establishment


    • Emphasis is given on the nature of business to be transacted by the
    venture and the formalities required for its incorporation

    From the view point of its expansion or growth.


    • Emphasis is given on the process of growth and the strategies used
    by entrepreneur.
    Promoter
    • Promoter is a person or persons who take/takes the initiative to setup
    a new business and to procure necessary funds from different sources
    through motivation and inspiration
    • An entrepreneur is a promoter of the business
    Types of Promoters
    Promoters

    Professional Occasional
    Promoters Promoters
    Promoters who are engaged in setting up of Promoters who take initiatives to set up a new
    corporate ventures. They are either individuals business if required.
    or institutions. Some individuals having some
    special qualifications are engaged as
    professional promoters
    Functions of Promoters
    • To conceive an idea of forming a company and explore its possibilities.
    • To conduct the necessary negotiation for the purchase of business in
    case it is intended to purchase as existing business. In this context, the
    help of experts may be taken, if considered necessary.
    • To collect the requisite number of persons (i.e. seven in case of a
    public company and two in case of a private company) who can sign
    the ‘Memorandum of Association’ and ‘Articles of Association’ of the
    company and also agree to act as the first directors of the company.
    Functions of Promoters
    • To decide about the following:
    (i) The name of the Company,
    (ii) The location of its registered office,
    (iii) The amount and form of its share capital,
    (iv) The brokers or underwriters for capital issue, if necessary,
    (v) The bankers,
    (vi) The auditors,
    (vii) The legal advisers.
    Functions of Promoters
    • To get the Memorandum of Association (M/A) and Articles of
    Association (A/A) drafted and printed.
    • To make preliminary contracts with vendors, underwriters, etc.
    • To make arrangement for the preparation of prospectus, its filing,
    advertisement and issue of capital.
    • To arrange for the registration of company and obtain the certificate
    of incorporation.
    • To defray preliminary expenses.
    • To arrange the minimum subscription.
    Duties of the Promoter
    To disclose the financial details

    To disclose all the material facts

    The promoter must make good to the company what he has obtained as a
    trustee

    Duty to disclose private arrangements

    Duty of promoter against the future allottees


    Liabilities of Promoter
    Liability to account in profit

    Liability for mis-statement in the prospectus

    Personal liability

    Liability at the time of winding up of the compan

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