Formation and Organization Q&A

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on March 25, 2022

1. What is a company?

2. Write down four characteristics of a company.

3. Explain how companies are formed.

4. What types of companies are there?

5. What is a memorandum of association?

6. What are the articles of association?

7. What are preliminary expenses?

8. Define the term "promotion."

9. What is share capital?

10. What are calls in arrears?

Frequently Asked Questions

How are companies formed?

Forming a company involves completing legal formalities and procedures. The formalities can be broken down into three stages: promotion, incorporation, and the subscription of capital.

What is difference between company and organization?

Formation of an organization takes place in four stages: promotion, incorporation, capital subscription, and commencement of business.

What is difference between company and organization?

What is difference between company and organization?

What are the types of organization?

There are a number of business organization types, including sole proprietorship, Partnership, corporation, and Limited Liability Company (LLC).

Why do we need organization?

The process of organizing creates a framework for reaching a company’s objectives and goals. Organizing is the process of defining and grouping activities, and establishing authority relationships among them to attain organizational objectives.

True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

One thought on "Formation and Organization Q&A"

  1. Promotion of a company means planning, its establishments, negotiation of preliminary contracts, drafting of memorandum and articles of association, prospectus and other matters relating the formation of the company or corporation. The person who initiate others in the matter of forming a company and organizing it, is known as promoter.

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