question_answer

Define promoter. What are the functions of a promoter?

Answer:

Ans.     A promoter is a person who conceives the new idea of starting a business, examines the feasibility of idea, assemble various resources, prepare necessary documents and perform other activities needed to commence the business.

Functions of a promoter:

1. Identification of business opportunity;

2. Feasibility studies: the following feasibility studies may be undertaken:

(a) technical feasibility: (b) financial feasibility (c) economic feasibility

3. Name approval;

4. Fixing up signatories to the Memorandum of Association;

5. Appointment of professionals;

6. Preparation of necessary documents.