Question

State any two motives behind corporate restructuring

Answer 1

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• ASSET RESTRUCTURING are techniques that change the ownership of the assets that support a business. These methods include the use of partnerships or trust to save taxes, discharge surplus cashflow and split companies into more productive business unit.

• Like a person turning over a new leaf and making a fresh start, corporations try to gain a second wind by restructuring. Whether the restructuring takes the form of splitting up a company, merging it with another company, reorganizing, or even taking on a new name, the goal is to end up with a more refined, more profitable entity. Both successful and failing companies may turn to restructuring to breathe fresh life and fresh profits into the business.

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Answer 2

Answer:

Explanation:

The ultimate objective of restructuring is to improve the company's financial picture. Stock prices and credit ratings should rise as a result of restructuring. In restructuring, businesses often grow leaner, cutting the work force and shedding less-profitable divisions or product lines.