Which document is prepared by the company as an invitation to the public to subscribe for the company's share?

Prospectus

The correct answer is option 3- Prospectus.

Prospectus is prepared by the company as an invitation to the public to subscribe for company's share.

A document issued by a company to invite the public and the investors for subscribing the securities is called a prospectus. The prospectus contains detailed information on the securities. A public company can issue the prospectus to offer its shares and debentures, whereas a private company cannot issue prospectus.

OTHER OPTIONS

• Memorandum of Association: This document outlines the fundamental conditions upon which the company is incorporated. It includes the company’s name, its objectives, the scope of its activities, and the liability of its members. It essentially acts as the company’s charter and defines its relationship with the external environment.

• Articles of Association: This document contains the rules and regulations governing the internal management of the company. It covers the rights and duties of the members, the appointment and removal of directors, the handling of financial records, and the conduct of meetings. It essentially governs how the company operates internally.