Distinguish between amalgamation absorption and reconstruction
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difference between amalgamation and absorption
amalgamation is the legal process in which two or more companies combine themselves to form a new company
on the other hand absorption is when two or more companies are combined into existing company
amalgamation of companies involves liquidation October more companies
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The amalgamation, absorption and reconstruction.
Explanation:
- Amalgamation is when two or more companies merge. Such as merging of the two balance sheets into one.
- Under amalgamation, the identities of both companies exist as separate entities and survive. Thus it involves the pooling of assets and liabilities of the companies.
- The absorption is the takeover of the company by another which results in a loss of business, it does not involve the pooling of assets. The small company is undertaken by a larger company.
- The reconstruction may be external internal. In internal reconstruction, the company is neither destroyed nor a new company is formed. The new company takes over the old one in external take over.
Learn more about the distinguish between amalgamation absorption and reconstruction.
- brainly.in/question/13064618 answered by nikhilkumar2288.
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