The formation and operation of a company follow a defined sequence of events. The correct order is:
- (C) Promotion: This initial phase involves conceptualizing the company's idea, establishing its purpose, preparing foundational documents, and seeking potential investors.
- (B) Incorporation: Following promotion, the company undergoes legal incorporation. This process includes registration with statutory bodies, such as the Registrar of Companies.
- (D) Floatation: Post-incorporation, the company proceeds to float its shares or debentures to secure capital through public or private offerings.
- (A) Commencement of Business: The final stage allows the company to initiate its operational activities after successful flotation.
The correct chronological order is: (C), (B), (D), (A).