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 Stages-Part-II
Teaching Aids : PPTs and Animation
CCP104.45 1
Objective :

On completion of this period the student

will be able to explain:
 Assembling
 Preparation of Financial Plan or Financing
the Proposition

CCP104.45 2
Recap :

In the Previous Class, we have discussed

about:
 Introduction to the formation of Joint
Stock Company
 What is a Promotion
 Stages of Promotion

CCP104.45 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

CCP104.45 4
As in the previous class, we have discussed that
stages of Promotion for a Joint Stock Company are
as follows:
 Assembling, and
 Preparation of a financial Plan or financing
the proposition
 Discovery of business opportunities

CCP104.45 5
Assembling :

 This involves bringing together or assembling

of original idea, property and managerial
ability

CCP104.45 6
Assembling :

Includes activities like:

 Selection of site
 Lease or purchase of land
 Arrangement for construction of buildings
 Purchase of equipment
 Securing patent rights

CCP104.45 7
Assembling :
Entering into contracts for:
 Technical
 Managerial
 Office
 Besides this entering into contracts with
persons for technical, managerial, office and
factory jobs are all to be undertaken by the
promoters
 Factory jobs
CCP104.45 8
Preparation of a Financial Plan or
Financing the Proposition :

 After Assembling all factors Promoters

proceed with preparation of financial plan

CCP104.45 9
Preparation of a Financial Plan or
Financing the Proposition :

 While preparing financial plan

 Adequate funds must be provided

CCP104.45 10
Preparation of a Financial Plan or
Financing the Proposition :

 Sufficient amount of cash in hand

 Margin for contingencies
 Think about different share & debentures for
raising finance

CCP104.45 11
Preparation of a Financial Plan or
Financing the Proposition :

 Enter into contract with under writing houses

 Agreement with Banks for raising loans
 Working Capital requirements

CCP104.45 12
Summary :

We have discussed about

 Assembling
 Preparation of a Financial Plan or
Financing the Proposition

CCP104.45 13
Quiz :

1. Assembling means
a) Collecting resources
b) Assembling of computers
c) Both
d) None

CCP104.45 14
1. After Assembling, what is stage of the
Promotion?
a) Preparation of Financial Plan
b) Discovery of business opportunities
c) Above two
d) None of the above

CCP104.45 15
Frequently Asked Questions :

1. How to assemble the original idea with

all the other activities?
2. How to prepare the financing
proposition?

CCP104.45 16
Assignment :

1. What is meant by Assembling?

2. How to prepare a financial Plan?

CCP104.45 17