Question

Distinguish between amalgamation absorption and external reconstruction

Answer 1

Amalgamation is when two or more companies willingly unite to carry on their business together. After amalgamation, the amalgamated company has a new name and a separate legal existence which has assets and liabilities of the two companies. External reconstruction is when one company changes it's external structure.

Answer 2

Amalgamation is when two or more companies willingly unite to carry on their business together. After amalgamation, the amalgamated company has a new name and a separate legal existence which has assets and liabilities of the two companies. ... External reconstruction is when one company changes it's external structure.