Question

Distinguish between amalgamation absorption and reconstruction

Answer 1

Answer:

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

Answer 2

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.

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• brainly.in/question/13064618 answered by nikhilkumar2288.