Multiple Choice Questions on M s ABC Pvt Ltd is a Private Limited Company is desirous to issue prospectus for inviting the public........... for SEBI Grade A ( Officer) Exam Preparation

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Multiple Choice Questions

M s ABC Pvt Ltd is a Private Limited Company is desirous to issue prospectus for inviting the public...........

Companies Act-Phase (I & II) Prospectus
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    M/s ABC Pvt. Ltd, is a Private Limited Company is desirous to issue prospectus for inviting the public for subscription of its issue. Can the Company do so?

     Yes

    Incorrect Answer

    No

    Correct Answer

    Partly Yes

    Incorrect Answer

    Partly No 

    Incorrect Answer
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    Explanation:

    A Private Company is prohibited from inviting the public for the subscription of its shares, i.e. a Private Company cannot issue Prospectus, whereas a Public Company is free to invite public for subscription i.e., a Public Company can issue a Prospectus.

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