Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:

Which of the following is NOT a purpose of a prospectus?

Options:

Informing the public about the company's existence

Attracting potential employees

Providing complete information about the company

Describing the process of collecting funds

Correct Answer:

Attracting potential employees

Explanation:

In summary, the prospectus is primarily focused on providing information to potential investors and guiding them through the process of investing in the company. While it might indirectly contribute to attracting potential employees, this is not its main purpose.