5. A group of 15 people decides to form a company and hence appointed Creators Pvt, Ltd. Creators Pvt. Ltd. were assigned the job of scanning the business environment and to identify various business opportunities, after thoroughly exploring the environment. Creators Pvt. Ltd. suggested them to start a 'Cab Services' in the posh areas of Delhi. Before converting the business opportunities into real project, Creators Pvt. Ltd., conducted feasibility studies and also suggested the namefor the company. They have entered into contract on behalf of the company also.
a. Identify the stage in the formation of a particular form of business organisation.
b. Under what category is Creators Pvt. Ltd. is working.
c. The contracts which are entered into before incorporation, of above mentioned form of organisation, are binding after incorporation?

Answer :

Answer:

Explanation:

Certainly! Let's break down the questions one by one:

a. This situation describes the stage in the formation of a particular form of business organization known as a "company" or "corporation."

b. Creators Pvt. Ltd. is operating under the category of a "promoter." Promoters are individuals or entities (like Creators Pvt. Ltd. in this case) who identify a business opportunity, conduct feasibility studies, suggest business ideas, and take initial steps to set up a company.

c. Contracts entered into by promoters on behalf of the company before its formal incorporation are generally considered binding after incorporation. This means that once the company is officially registered and established as a legal entity, it assumes the rights and responsibilities of those pre-incorporation contracts.

In simple terms, Creators Pvt. Ltd. helped the group of 15 people by suggesting they start a cab service company in posh areas of Delhi. They also came up with the company's name and handled initial contracts. When a company officially forms later, the agreements made by Creators Pvt. Ltd. will still be valid and enforceable.

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