Western Europe , New Company., UP practical aspects of location

It is clear that a company can come into existence only when the pronx4crs take the lead. Indeed, promoters render a very useful service to society and they have played an important role in the industrial development of c mtries in Western Europe and the U.S.A. A promoter is nghfly described as a creator of wealth' and 'an economic prophet'.Hoagland. Not only does he foresee the development of somet ling which is yet to be brought into existence, but also takes all U le steps necessaiy to explore the potentiality of the opporhnuty, and then arranges to pub the ideas into action. Thus, a promoter helps new products to be manufactured as also additional employment to be created. In this process, the promoter also assumes consideraWe risks. If his idea goes wrong in actual practice, the time and money spent at the promotional stage go completely waste. To orient such an eventuality, promoters proceed with utmost care and caution before 'almching any venture of fanning a company ::
New Company. A new company may be promoted either to exploit a new invention or exploit some.new;y discovered natural resources like minerals, or take advantages of some line of commercial activity which is profitable, it may also be formed for bringing a number of going concerns under unitie management through merger :
STAGES IN COMPANY PROMOTION
The promoter s functions can be divided into four stages: (i) Discoverv. (ii) Investdg,ation, (iii) Assembly, and (iv) incorporation.
The first stage commences when am idea is conceived of by the promoter for starting a venhu De and organusing a connpany for that purpose. There may be several opportunities before him, he has to choose one or more of these depending upon his ability and resources. Generally, he chooses one at a time. :
issuing shares, or tluough loans, he ascertains n nether adequate supply of raw materials and layout will be forthcoraittg whether power supply and transportation facilities exist at the proposed Ale, amd whether plant and equupment as well as buildings, etc. cam X Adored. In short, the promoter makes an economic analysis of the prc if the project a market study to determine thc availability of imply : estimate the demand for output, and finally a feasibility survev regarded UP practical aspects of location, layout and operation of the enterprise.
66 '9: SECRETARIAL PRACTIGE