When an existing company takes over the business of one or more existing companies, it is called _____________.
A
Amalgamation
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B
Absorption
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C
Internal reconstruction
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D
None of these
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Solution
The correct option is A Absorption The process in which two or more than companies are wound up to form a new company, which acquires their business is known as Amalgamation. The process in which one company takes over the other company is known as Absorption.