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The Memorandum of Association lays down the scope of activates of a company.  It describes the objects and powers of the мебеликомпютриcompany.  Anything done by a company outside the scope of memorandum will be treated as ultra virus.  Even all the shareholders cannot validate an ultra virus act and make it binding on recopy.  Therefore, all those who want to deal with a company must first ensure that the company’s authorizes to entry into the transactions which it wants to have with them.  Memorandum of associations a public document and anybody can get a copy on payment f a nominal charge.

The term ‘promoter’ means an individual, firm or institution which undertakes to form a company with reference to a given object and sets it going and takes the necessary steps to accomplish that purpose.  It is not a terms of law but of business.  Tata, Birla, Ambani are well-known promoters in India.
The role of promoters may be described as follows:

• Discovery of Business Opportunities: Promoters identify the opportunities which could be undertaken as business concerns.  They carry out a preliminary study of the market to judge whether a new product or service will sell.  They also consult experts in the field for this purpose.

• Detailed Investigation: Promoters conduct detailed examination to judge the prospects and profitability of business proposals.  They analyze the probable cost of production, nature of competition in the market, availability of required technology and raw materials,. Expected sales volume, amount of refit expected, etc.

• Assembling Resources: Promoters take steps to ensure the availability of necessary capital, materials, machinery, personnel, etc.  They enter into contracts with brokers, underwriters, bankers, etc.

• Canvassing: Promoters approach the appropriate persons and persuade them to join in the formation of the company.

• Launching the Enterprise: Promoters take steps to get the Oman incorporated.  They set the necessary documents prepared a filed so that the company is formed and can commence business operations

Promotion is the process of identifying some business idea or opportunity and taking steps to implement it through the incorporation and flotation of a company. It involves detailed study of the proposed business and formation of a company to carry on the business.
The steps involved in promotion are as fools:

• Discovery of a Business Idea: First of all, the idea of starting a business is born in his mind of the promoter. The idea may relate to manufacturing or selling a new product by new methods, introducing a product within uses, selling a product in new market or commercial use of an invention or patent.  The promoter identifies the areas for profitable investment and takes all preliminary work to analyze the opportunity.

• Detailed Investigation: This step involves a detailed analysis of the capital investment, required expected volume of seas, degree of competition in the market, expected cost of production, degree of risk involved etc.  The purpose of detailed investigation is to ascertain the profitability and possibility of the proposed business.

• Assembling the Resources: Ones the promoter is satisfied about the feasibility and viability of the project, steps retaken to collect financial and other resources for the proposed venture.  Preliminary agreements dare made for purchase of assets. Appointment of personnel, etc.  Decisions are taken regarding the size, location, layout, etc of business.

• Incorporation: It means getting the company registered under the Companies Act.  For this purpose, various documents are prepared and filed with the Registrar of Companies. Memorandum of association and articles of association are the main documents.  A suitable name of the company is selected.  The promoter appoints bankers, brokers, underwriters and solicitors of the company.

A promoter is neither an agent nor a trustee of the company set by him.  He is not an agent of the company because a non existent principal (company before its incorporation) cannot have an agent.  Therefore, a promoted is personally liable for the preliminary contracts if they are not ratified by the company after incorporation. Though a promoter is not a trustee, he must observe good faith in the promotion of the company.  He must nutmeat any secret profits out of his dealings.  In case there are nay profits on the purchase of machinery and other assets for the company, he must disclose them to the company.

Promotion means the discovery of business opportunities and subsequent organization of funds and managerial skills into a business enterprise for the purpose lovemaking refits there from.
A promoter is a person who identifies a business opportunity, analysis its prospects and takes steps to form a company with reference to the business opportunity.  The promoter conceives the idea of a business, analysis its prospects, brings together the required resource and gets a company incorporated.  The promoter may be an individual firm or even company.
The objects of promotion of a company are as under
to start a new business enterprise;
to expand an existing enterprise, and
to amalgamate or combine tow or more existing enterprise into one enterprise.

The economic objectives of business are as follows

The primary objective of business is to earn profits.  This is because no business can survive without profits for a ling time.  People enter into business in the hope of earning money.  Profits into only serve as the source of livelihood for businessmen but also help them to expand their businesses activities. The growth of every business depends largely on its ability to earn profits.  Profitability of business firm enables it to gain recognition and prestige in society.  Success of business is therefore measured in terms of it profits.

Profit can be earned only when thunder is customer’s toss buy goods and services.  It is there fore necessary for every business to create and sustain demand for its products and services.  Demand is created through advertising and other methods of promotion.  According to Ducker “There is only one valid definition of business purpose: to create a customer…. It is to supply the customer that society entrusts wealth producing resources to a business enterprise”.
But it is not enough to create customers.  Business must establish a place for itself in the market and protect itself from competition.  Businesses have to acquire a reasonable share of the total market and preserve and enhance its market share.

In a competitive market a business can be successful if it strives continuously to achieve new or improved products or services new methods of production ad distribution.  Exploring and discovering new and better ways and means of increasing costumer satisfaction is call innovation.  It involves introducing better products improved methods of production exploring new markets and using better methods of distribution.  Producing color television in place of black and white sets using power looms in place of hand looms for weaving distributing the product through the manufacturer’s own retail shops instead of dealers are examples of innovation.  Thus innovation is an important economic objective off business.

A business should also aim at increasing efficiency of operations in order to minimize per unit cost of production and distribution.  This requires making the best use of scarce resources like materials manpower machinery etc.  This objective can be achieved by reducing wastage of raw materials making efficient use of machines and employing efficient and dedicated employees.  Economic objectives of business refer to the aims of earning money by increasing the efficiency of business operations.  On the other hand social objectives imply rendering service to customers employees and other sections of society.  With regard to economic objectives financial gain is the primary motive whereas with regard to social objectives service is the main consideration

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