Question

2 8) In amalgamation of two companies----​

Answer 1

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.

Answer 2

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* The phrase "merger" or "consolidation" has largely superseded the term "amalgamation" in widespread usage in the United States.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.