General Studies · Commencement of Business
Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R. Assertion A: A newly formed company having share capital can legally start its business operations immediately upon receiving the Certificate of Incorporation (COI). Reason R: Before legally commencing business, a company having share capital must deposit the subscribed capital and file a declaration of commencement with the Registrar. In the light of the above statements, choose the most appropriate answer from the options given below:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A is correct but R is not correct.
- 2Both A and R are correct but R is NOT the correct explanation of A.
- 3Both A and R are correct and R is the correct explanation of A.
- 4A is not correct but R is correct.✓
Correct answer
A is not correct but R is correct.
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