2 8) In amalgamation of two companies----
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Answer:
Amalgamation is the combination of two or more companies into a new entity by combining the assets and liabilities of both entities into one. The transferor company is absorbed into the stronger, transferee company, leading to an entity with a stronger customer base and more assets.
AMALGAMATION
An amalgamation occurs when two or more corporations merge to form a new company. Because neither of the companies involved exists as a legal entity, amalgamation differs from a merger. Instead, an entirely new organization is created to hold both firms' assets and obligations.
KEY POINTERS OF AMALGAMATION:
* The phrase "merger" or "consolidation" has largely superseded the term "amalgamation" in widespread usage in the United States. However, in places like India, it is still widely used.
* Amalgamation is the process of merging the assets and liabilities of two or more corporations into a single new organization.
* Unlike a regular merger, neither of the firms involved exists as a separate company.