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Syllabus

Formation of a Company — Syllabus

CBSE · Class 11 · Business Studies

What Formation of a Company covers in CBSE Class 11 Business Studies: 4 topics, for the 2026-27 session. Topics include Stages in the Formation.

82 questions80 flashcards5 concepts

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4 Topics · CBSE Class 11 Business Studies · 2026-27

Topics in Formation of a Company

1

1. Stages in the Formation of a Company

  • Formation of a company is divided into three distinct stages: Promotion, Incorporation, and Subscription of capital.
  • Promotion is the first stage in the formation of a company.
  • Incorporation is the stage in which the company receives legal recognition.
2

2. Promotion and the Role of Promoters

  • Promotion begins with conceiving a business idea and taking steps to form a company.
  • A promoter undertakes to form a company with reference to a given project, sets it going, and takes necessary steps to accomplish that purpose.
  • A promoter may be a person, a group of persons, or a company.
3

3. Memorandum of Association

  • Memorandum of Association is the most important document of a company.
  • It defines the objectives of the company.
  • The company cannot legally undertake activities not contained in the Memorandum of Association.
4

4. Articles of Association and Related Documents

  • Articles of Association are rules regarding internal management of a company.
  • They are subsidiary to the Memorandum of Association.
  • Articles of Association are abbreviated as AOA.

Key Concepts

Central concept: Formation of a company as a legal and procedural process

PromotionIncorporationSubscription of capitalMemorandum of AssociationArticles of AssociationPromoters' legal positionCommencement of business

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Frequently Asked Questions

What are the important topics in Formation of a Company for CBSE Class 11 Business Studies?
Key topics in Formation of a Company include Stages in the Formation of a Company, Promotion and the Role of Promoters, Memorandum of Association, Articles of Association and Related Documents. Study these first, then practise questions on each for Class 11 exams.
How should I revise Formation of a Company for Class 11 exams?
Learn the core ideas first, then work through the 82 practice questions on Formation of a Company. Revise definitions regularly and use flashcards for quick recall before the exam.

Sources & Official References

Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.

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