Accountancy, asked by oOmisskillerOo, 4 days ago

write the merits and demerits of amalgamation???
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Answered by vaishanvi101
3

Disadvantages of Amalgamation

Amalgamation may lead to elimination of healthy competition.

Reduction of employees may take place.

There could be additional debt to pay.

Business combination could lead to monopoly in the market, which is not always positive.

The goodwill and identity of the old company is lost.

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Answered by shivuprajapati2006
4

Explanation:

But amalgamation is quite frequently used in developing countries like India for combining companies. The amalgamation of two or more companies is possible only if the companies are engaged in the same line of business and have little bit similar production operations.

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