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Difference between amalgamation and absorption and external reconstruction?
Nirmalkandhesh
1.Definition amalgamation where two or more companies doing similar business go into liquidation and a new company is formed . Absorption when existing company purchase another existing company is known as absorption.
Wiki User
∙ 12y ago
Amalgamation involves two or more companies merging to form a new entity where they combine their assets, liabilities, and operations. Absorption is when one company takes over another, with the absorbed company losing its separate identity. External reconstruction involves reorganizing a company's structure or operations, often due to financial difficulties, through methods such as recapitalization or changing the legal form of the company.
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Difference between amalgamation and external reconstruction?
Amalgamation involves two or more companies merging to form a new entity, combining their assets, liabilities, and operations. External reconstruction is the process of reorganizing a company's capital structure and operations without involving the formation of a new entity, often to improve financial performance or simplify business operations.
What is the first step in performing an autopsy?
The first step in performing an autopsy is to carefully document and examine the external features of the body, including any injuries or markings present. This initial external examination helps establish a baseline for further internal examination and provides important information for the autopsy report.
What issues emerge in this case in terms of communicating change with the outside world?
Inadequate communication about the change can lead to confusion, rumors, and resistance from stakeholders. Lack of transparency may result in loss of trust and credibility with external parties. Failure to effectively convey the rationale and benefits of the change can hinder support and cooperation from the external world.
What is the answer to the 9th question on the 1st scavenger hunt on cde?
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Which archetype does the myth of Pyramus and Thisbe represent?
The myth of Pyramus and Thisbe is often seen as representing the archetype of forbidden love, miscommunication, and tragic fate. It explores the themes of love thwarted by external forces, the consequences of misunderstandings, and the ultimately tragic outcomes of these circumstances.
What is the difference between wicking and absorption?
Wicking is a kind of absorption, in which capillary pressure is the only cause. The absorption may happen by external pressure and/or capillary pressure.
What is amalgamation and absorption and external reconstruction in accounting?
Absorption:It is the process in which one existing company takes over the other existing company and merge together as a single unit.Amalgamation:It is the process in which two or more existing companies joins together and start new company with new name and identity and dissolves the existing companies.External Reconstruction:It is the process in which one existing company reconstruct itself with new name and identity.
Distinguish between internal and external reconstruction of a company?
internal reconstruction no new company is formed in external reconstruction an existing company is dissolved and a new company is formed with the same shareholdders. there will be absence of liquidation expenses in internal reconstruction. liquidation expenses is present in external reconstruction.
What is external reconstruction?
It is similar to amalgamation though not exactly the same. In external reconstruction a new company is formed for the purpose of taking over the business of an existing sick company which has incurred huge losses and is facing financial difficulties. Existing company is wound up by selling its business to the newly formed company which is generally similarly named and owned by the same shareholders to a great extent.http://wiki.answers.com/What_is_external_reconstruction_of_companies_in_accounting#ixzz1aT6UQ0cI
What is external reconstruction of companies in accounting?
It is similar to amalgamation though not exactly the same. In external reconstruction a new company is formed for the purpose of taking over the business of an existing sick company which has incurred huge losses and is facing financial difficulties. Existing company is wound up by selling its business to the newly formed company which is generally similarly named and owned by the same shareholders to a great extent.
What is process of external recontruction?
"External reconstruction" means repairing the outer wall of something.
Which costing method is used for external reporting purpose?
absorption costing
What is Difference between internal and external indicators?
what is the difference between the external & internal indicator
What is the difference between external and internal communications?
What is the difference between external and internal communications
What is the difference between external and internal indicator?
what is the difference between the external & internal indicator
Distinguish between internal and external reconstruction?
INTERNAL RECONSTRUCTION- when the name of the co. remain as before but changes are made in assets and liabilities of the co. and entries are made in the books of the co. of such changes and balance sheet is amended it is called internal reconstruction. EXTERNAL RECONSTRUCTION- when such heavy changes are not possible or new capital is to be issued or there is much dissent among shareholders or by changing the name of the co. , an effort is made to give new life to the co. the co. is liquidated and a new co. is formed to purchase the assets and liabilities of old co. ,it is called external reconstruction.
What is the difference between external and internal stimuli?
internal is in and external is out
