MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Dissolution of Partnership vs Firm

If a new comp...

Question

If a new company Chandrika (New) Ltd. is formed to take over the business of an existing company Charu Ltd., it is a case of ________________.

A

External Reconstruction

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

B

Internal Reconstruction

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

Absorption

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

Amalgamation

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A External Reconstruction
External reconstruction takes place when an existing company goes into liquidation for the express purpose of selling its assets and liabilities to a newly formed company which is generally owned and named alike. It is similar to amalgamation though not exactly the same.

Suggest Corrections

thumbs-up

0

Similar questions

Q. When a new company is formed to take over the business of an existing company it is known as _____________ .

Q. When one existing company goes into liquidation and a new company is formed to take over its business, it is called an _____________.

Q. When an existing company is liquidated and a new company is formed with the same shareholders to take over its business, it is called __________.

Q. A new company was formed. All the directors appointed in the new company were appointed by XYZ Ltd. Thus the new company is a/an _____________of XYZ Ltd.

Q. A new company was formed. All the directors appointed in the new company were appointed by XYZ Ltd. Thus the new company is __________ of XYZ Ltd.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Dissolution of Partnership Vs Firm

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Dissolution of Partnership vs Firm

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon