Reducing the capital of a company is called ___________.

Internal reconstruction

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External reconstruction

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Consolidation

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None of these

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Solution

The correct option is B Internal reconstruction
Reconstruction in which the once again reorganized by reevaluation assets and liabilities and writing off the losses by reducing the paid up of shares. Such a process is called internal reconstruction which is carried out without liquidating the company.

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Similar questions

The capital of a company is divided into number of parts each one of which are called

(a) Dividend

(b) Profit

(d) Share

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