The correct answer is option 4- (C), (B), (D), (A).
The correct sequence of the steps in the life of a company is as follows:
C) Promotion: Promotion is the first stage in the formation of a company. It involves conceiving a business idea and taking the initiative to form a company so that practical shape can be given to exploit the available business opportunity. Thus, it begins with somebody has discovered a potential business idea. Any person or a group of persons or even a company may have discovered an opportunity. If such a person or a group of persons or a company proceeds to form a company, then, they are said to be the promoters of the company.
B) Incorporation: After completing various formalities, promoters make an application for the incorporation of the company. The application is to be filed with the Registrar of Companies of the state within which they plan to establish the registered office of the company. The application for registration must be accompanied with certain documents such as the Memorandum of Association, Articles of Association etc.
D) Flotation: Flotation refers to the process of offering shares of the company to the public for the first time. A public company can raise the required funds from the public using the issue of securities (shares and debentures etc.). For doing the same, it has to issue a prospectus which is an invitation to the public to subscribe to the capital of the company and undergo various other formalities.
A) Commencement of Business: Once the company is incorporated and has raised the necessary capital through the flotation of shares, it can commence its business operations.
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