Public Private and Global Enterprises Test - 4

A prospectus is a legal document issued by companies that are offering securities for sale.

The formalities of formation of a company can be divided into four distinct stages, which are (i) Promotion (ii) Incorporation (iii) Subscription of capital (iv)Commencement of business.

Preliminary contracts are contracts entered into by the promoters on behalf of the company before its incorporation with third parties.

Preliminary contracts are contracts entered into by the promoters on behalf of the company before its incorporation with third parties. Such contracts are legally not binding upon the company even after it comes into existence.

A joint venture is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity.

Majority-owned foreign affiliate (MOFA). A foreign affiliate in which the combined ownership of all U.S. parents exceeds 50 percent.

A multi National corporation (MNC) is usually a large corporation incorporated in one country which produces or sells goods or services in various countries.

A memorandum of understanding (MOU) is a formal agreement between two or more parties. Companies and organizations can use MOUs to establish official partnerships.

Industrial Policy Resolution of 1956 (IPR 1956) is a resolution adopted by the Indian Parliament in April 1956. It was the first comprehensive statement on industrial development of India. This comprised 17 industrial areas which were strictly under the Central Government. In the 1956 resolution on industrial policy 17 industries were reserved for public sector.

At present the number of industries kept reserved for government sector is three:
They are:
1.Atomic energy,
2.Railway transport and
3.The substances specified in the schedule to the notification of the government of India in the Department of the Atomic Energy dated 15th march, 1995.