Which document defines the internal rules for managing a company and regulating its members?
Correct answer: B. Articles of association
- A. Memorandum of association
- B. Articles of association
- C. Certificate of incorporation
- D. Statement of capital
Explanation
The articles of association contain the company’s internal rules, including procedures for meetings, voting and management. The memorandum mainly sets out the company’s external objectives and relationship with outsiders.
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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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