MyQuestionIcon

1

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

Depreciation

When one exis...

Question

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

A

Absorption

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

B

Amalgamation

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

C

External Reconstruction

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

D

Internal Reconstruction

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

Open in App

Solution

The correct option is C External Reconstruction
External reconstruction means where the company goes in to liquidation which means sells its assets and liabilities to form a new company. They sell the assets and liabilities and form a new company with similar name.

Suggest Corrections

thumbs-up

0

Similar questions

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

Q. 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 ________________.

Q. When an existing company takes over the business of one or more existing companies, it is called _____________.

Q. When one existing company takes over the business of another company or companies, it is _____________.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Depreciation

ECONOMICS

Watch in App

explore_more_icon

Explore more

Standard XII Economics

Join BYJU'S Learning Program

CrossIcon