Concept:The memorandum of association is the fundamental charter of a company that defines its relationship with the outside world, including shareholders and the public.
Explanation:The memorandum of association is a legal document prepared during the formation and registration of a limited liability company.
It contains essential details such as the company's name, registered office, objects, liability of members, and authorised capital.
It defines the company's relationship with the public and outsiders by stating the scope of its powers and activities.
It is not a document inviting the public to buy shares; that function belongs to a prospectus.
It does not govern the affairs of a partnership, because it applies only to incorporated companies.
It does not regulate a company's internal affairs; that is the role of the articles of association.
Therefore, the memorandum of association is correctly described as a document defining a company's relationship with the public.
Answer:A. defining a company's relationship with the public