What are amalgamation, absorption, and external reconstruction?
Understand the Problem
The question is likely referring to the concepts of amalgamation, absorption, and external reconstruction in a specific field such as business or law. It seeks clarification or explanation of these terms and their interrelations or applications.
Answer
Amalgamation: combining companies; Absorption: one company takes over another; External reconstruction: new company created from reorganization.
Amalgamation involves combining two or more companies to form a new company. Absorption occurs when one company takes over another, and no new company is formed. External reconstruction is when a new company is formed to take over a reorganized company.
Answer for screen readers
Amalgamation involves combining two or more companies to form a new company. Absorption occurs when one company takes over another, and no new company is formed. External reconstruction is when a new company is formed to take over a reorganized company.
More Information
Amalgamation and absorption are strategies to restructure businesses, often used to eliminate competition or strengthen financial stability. They can result in significant structural and operational changes.
Tips
Confusing absorption with amalgamation is common, pay attention to whether a new company is formed or not.
Sources
- Amalgamation Absorption and Reconstruction of Companies - jedhecollege.ac.in
- Amalgamation, Absorption & External reconstruction - siesce.edu.in
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