The document that normally states a company’s objects and the scope of its powers is the:
Correct answer: A. Memorandum of association
- A. Memorandum of association
- B. Articles of association
- C. Partnership deed
- D. Annual report
Explanation
The memorandum of association sets out the company’s basic constitution, including its objects and permitted scope. The articles mainly regulate internal management and member relations.
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About Nature and Forms of Business Organisation
Business organisation combines people, capital, materials and entrepreneurship to produce goods or services and earn profit, while also meeting customer and social needs. Coverage includes sole proprietorships, partnerships, companies and cooperatives, with comparisons of ownership, liability, control, profit sharing, continuity and legal status.
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