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Sohan and Shyam are partners in a business of manufacturing biscuits. They are planning to merge with a namkeen manufacturing company in order to increase the sales and earn more profit. They decided to adopt merger as their strategy for growth. Mention which two ways are available for them to select to give way to the merger.
(i) Amalgamation
(ii) Absorption
(iii) Consolidation
(iv) Acquisition
(i) Amalgamation
(ii) Absorption
(iii) Consolidation
(iv) Acquisition
- a)(i) and (ii)
- b)(i) and (iii)
- c)(iii) and (iv)
- d)(i) and (iv)
Correct answer is option 'A'. Can you explain this answer?
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Sohan and Shyam are partners in a business of manufacturing biscuits. ...
- Amalgamation: An amalgamation is a combination of two or more companies into a new entity. Amalgamation is distinct from a merger because neither company involved survives as a legal entity. Instead, a completely new entity is formed to house the combined assets and liabilities of both companies.
- Absorption: Absorption is defined as the process when one thing becomes part of another thing, or the process of something soaking, either literally or figuratively. An example of absorption is soaking up spilt milk with a paper towel. A paper towel takes up water, and water takes up carbon dioxide, by absorption.
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Sohan and Shyam are partners in a business of manufacturing biscuits. ...
Amalgamation and Absorption are the two ways available for Sohan and Shyam to give way to the merger.
Amalgamation:
Amalgamation refers to the combination of two or more companies into a single entity, where the assets, liabilities, and operations of the merging companies are consolidated. In this process, a new company is formed, and the existing companies cease to exist. Amalgamation typically occurs when two or more companies of similar sizes and financial standing decide to merge to create a stronger entity.
Absorption:
Absorption is a type of merger where one company, called the absorbed company, is absorbed into another company, known as the absorbing company. In this process, the absorbed company ceases to exist, and its assets, liabilities, and operations are transferred to the absorbing company. The absorbing company continues its operations with the added assets and liabilities of the absorbed company. Absorption is usually undertaken when one company is significantly larger and more financially stable than the other.
Choice of Amalgamation and Absorption:
In the given scenario, Sohan and Shyam, as partners in a biscuit manufacturing business, are planning to merge with a namkeen manufacturing company. To give way to this merger, they have the choice of adopting amalgamation or absorption as their strategy for growth.
The correct answer is option (a) (i) and (ii) - Amalgamation and Absorption. This means that Sohan and Shyam can either combine their biscuit manufacturing company with the namkeen manufacturing company to form a new entity (amalgamation) or they can absorb the namkeen manufacturing company into their existing biscuit manufacturing company (absorption). Both options would result in the consolidation of assets, liabilities, and operations of the two companies, leading to increased sales and potential for higher profits.
By selecting either amalgamation or absorption, Sohan and Shyam can leverage the strengths of both companies, expand their product offerings, and potentially achieve economies of scale. They can also benefit from synergies in terms of distribution, marketing, and production, which can lead to increased market share and competitive advantage in the snack food industry.
Overall, adopting either amalgamation or absorption as a strategy for growth through the merger would provide Sohan and Shyam with opportunities to expand their business and drive profitability in the long run.
Amalgamation:
Amalgamation refers to the combination of two or more companies into a single entity, where the assets, liabilities, and operations of the merging companies are consolidated. In this process, a new company is formed, and the existing companies cease to exist. Amalgamation typically occurs when two or more companies of similar sizes and financial standing decide to merge to create a stronger entity.
Absorption:
Absorption is a type of merger where one company, called the absorbed company, is absorbed into another company, known as the absorbing company. In this process, the absorbed company ceases to exist, and its assets, liabilities, and operations are transferred to the absorbing company. The absorbing company continues its operations with the added assets and liabilities of the absorbed company. Absorption is usually undertaken when one company is significantly larger and more financially stable than the other.
Choice of Amalgamation and Absorption:
In the given scenario, Sohan and Shyam, as partners in a biscuit manufacturing business, are planning to merge with a namkeen manufacturing company. To give way to this merger, they have the choice of adopting amalgamation or absorption as their strategy for growth.
The correct answer is option (a) (i) and (ii) - Amalgamation and Absorption. This means that Sohan and Shyam can either combine their biscuit manufacturing company with the namkeen manufacturing company to form a new entity (amalgamation) or they can absorb the namkeen manufacturing company into their existing biscuit manufacturing company (absorption). Both options would result in the consolidation of assets, liabilities, and operations of the two companies, leading to increased sales and potential for higher profits.
By selecting either amalgamation or absorption, Sohan and Shyam can leverage the strengths of both companies, expand their product offerings, and potentially achieve economies of scale. They can also benefit from synergies in terms of distribution, marketing, and production, which can lead to increased market share and competitive advantage in the snack food industry.
Overall, adopting either amalgamation or absorption as a strategy for growth through the merger would provide Sohan and Shyam with opportunities to expand their business and drive profitability in the long run.
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Sohan and Shyam are partners in a business of manufacturing biscuits. They are planning to merge with a namkeen manufacturing company in order to increase the sales and earn more profit. They decided to adopt merger as their strategy for growth. Mention which two ways are available for them to select to give way to the merger.(i) Amalgamation(ii) Absorption(iii) Consolidation(iv) Acquisitiona)(i) and (ii)b)(i) and (iii)c)(iii) and (iv)d)(i) and (iv) Correct answer is option 'A'. Can you explain this answer?
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Sohan and Shyam are partners in a business of manufacturing biscuits. They are planning to merge with a namkeen manufacturing company in order to increase the sales and earn more profit. They decided to adopt merger as their strategy for growth. Mention which two ways are available for them to select to give way to the merger.(i) Amalgamation(ii) Absorption(iii) Consolidation(iv) Acquisitiona)(i) and (ii)b)(i) and (iii)c)(iii) and (iv)d)(i) and (iv) Correct answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Sohan and Shyam are partners in a business of manufacturing biscuits. They are planning to merge with a namkeen manufacturing company in order to increase the sales and earn more profit. They decided to adopt merger as their strategy for growth. Mention which two ways are available for them to select to give way to the merger.(i) Amalgamation(ii) Absorption(iii) Consolidation(iv) Acquisitiona)(i) and (ii)b)(i) and (iii)c)(iii) and (iv)d)(i) and (iv) Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sohan and Shyam are partners in a business of manufacturing biscuits. They are planning to merge with a namkeen manufacturing company in order to increase the sales and earn more profit. They decided to adopt merger as their strategy for growth. Mention which two ways are available for them to select to give way to the merger.(i) Amalgamation(ii) Absorption(iii) Consolidation(iv) Acquisitiona)(i) and (ii)b)(i) and (iii)c)(iii) and (iv)d)(i) and (iv) Correct answer is option 'A'. Can you explain this answer?.
Sohan and Shyam are partners in a business of manufacturing biscuits. They are planning to merge with a namkeen manufacturing company in order to increase the sales and earn more profit. They decided to adopt merger as their strategy for growth. Mention which two ways are available for them to select to give way to the merger.(i) Amalgamation(ii) Absorption(iii) Consolidation(iv) Acquisitiona)(i) and (ii)b)(i) and (iii)c)(iii) and (iv)d)(i) and (iv) Correct answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Sohan and Shyam are partners in a business of manufacturing biscuits. They are planning to merge with a namkeen manufacturing company in order to increase the sales and earn more profit. They decided to adopt merger as their strategy for growth. Mention which two ways are available for them to select to give way to the merger.(i) Amalgamation(ii) Absorption(iii) Consolidation(iv) Acquisitiona)(i) and (ii)b)(i) and (iii)c)(iii) and (iv)d)(i) and (iv) Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sohan and Shyam are partners in a business of manufacturing biscuits. They are planning to merge with a namkeen manufacturing company in order to increase the sales and earn more profit. They decided to adopt merger as their strategy for growth. Mention which two ways are available for them to select to give way to the merger.(i) Amalgamation(ii) Absorption(iii) Consolidation(iv) Acquisitiona)(i) and (ii)b)(i) and (iii)c)(iii) and (iv)d)(i) and (iv) Correct answer is option 'A'. Can you explain this answer?.
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