DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : R. Dasharatham
Destination : Lecturer
Branch : DCCP
Institute : GPW, Warangal
Year/Semester : I Year
Subject : Business Organization
Subject Code : CCP104
Topic : Forms of a Joint Stock Company
Duration : 50 Mts
Sub Topic : Promotion for a JSC Stage - I
Teaching Aids : PPTs and Animation
CCP104.43 1
Objectives :

On completion of this period the student

will be able to:
 Explain the qualities of promoters
 Types of Promoters

CCP104.43 2
Recap :

We know that:
 Formation of JSC has different stages
 Promotion
 Incorporation
 Commencement of Business
 Promotion is the first stage

CCP104.43 3
 COMPANY FORMATION

II. LEGAL ASPECT

I. BUSINESS
ASPECT
1. PROMOTION 3. PROSPECTUS
2. INCORPORATION
A. DISCOVERY OF
NEW IDEA

B. ASSEMBLING A. MEMORANDUM OF B. ARTICLES C. D.

ASSOCIATIONN OF WRITTEN NO
ASSOCIATION CONSENT TI
C. PREPARATION CE
OF FINAL PLAN

4. COMMENCEMENT CERTIFICATE

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Qualities of Promoters :

 Promoters are entrepreneurs

 Foresee prospects of gain in a business
 Take active steps to start company

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Qualities of Promoters :

 Take necessary initiative

 Place business proposition before general
public If public funds are needed

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Types of Promoters:
2. Professional Promoters:
Professional promoters are those who have adopted
promotion of companies as their profession.
2. Entrepreneurs: Entrepreneurs are those who according
to their own idea promote a company and later on
direct it.

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Types of Promoters:

3. Occasional Promoters: Occasional promoters are those

who come forward only to establish a particular company
and after that company has been established they go
back to their old occupation.

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Summary :

We have seen

 Qualities required for a Promoter

 Types of Promoters

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1. Will the Government also act as a Promoter in
certain cases?
a) Yes
b) No

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Frequently Asked Questions :

1. What is Promotion?

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Assignment :
1. What are the activities of Promoters?
2. Briefly explain the following types of Promoters:
a) Entrepreneurs
b) Professional Promoters
c) Technical or Engineering Firms
3. Briefly explain the following types of Promoters:
a) Financial Institutions
b) Government
c) Specialized institutions
CCP104.43 12