answersLogoWhite

0

You have to deal with special legal issues. Having a business lawyer help deal with the procedures and help out.

User Avatar

Wiki User

11y ago

What else can I help you with?

Continue Learning about Accounting

What is the difference between purchase and pooling accounting methods?

1. In case of Pooling Accounting new balance sheet of the combined company is created whereas in case of Purchase Accounting no new balance sheet is prepared. Thepurchasing company adds the assets of the acquired company to its balance sheetusing a fair market value.2. In case of Pooling Accounting it is basically the merging of two companies whereas incase of Purchase Accounting the acquired company is known as investment.3. In case of Pooling Accounting 'who is buying whom' is not clearly stated whereas incase of Purchase Accounting 'who is buying whom' is clearly stated.4. In case of Pooling Accounting it didnot record the price the acquiring company has topay for the acquisition whereas in case of Purchase Accounting it is valued using thefair market value.Answer by,Mr. Shabbir Alam


What is the capital maintenance concept for?

Protect the issued capital of the company for the benefit of creditors Coy is separate legal entity - capital belongs to coy (not to the members) A company cannot expend its funds buying back its own shares; a company can not own shares in itself directly or indirectly through an intermediary such as a subsidiary … these principles have been substantially amended by statute.


What is goodwill under financial accounting?

goodwill is the continuous buisness that a company gets from its customers/client. A business wishing to take over another business will depend on retaining all existing customers and are willing to pay "good Will" to the company they are buying out for their number of contstant customers


Where could one find an accounting business for sale?

Probably a good place to buy an accounting business is at a business center or at a business meeting. Buying online is not recommended as there are quite a lot of scams around.


What uses of financial accounting information are made by (a) inventors (b) creditors?

(a) Investors use financial accounting information to assess a company's profitability, financial health, and growth potential, helping them make informed decisions about buying, holding, or selling stocks. They analyze metrics such as earnings per share, return on equity, and overall financial trends. (b) Creditors utilize financial accounting information to evaluate a company's creditworthiness and ability to repay debts. They focus on financial ratios, cash flow statements, and balance sheets to determine the risk associated with lending money or extending credit.

Related Questions

What is the difference between purchase and pooling accounting methods?

1. In case of Pooling Accounting new balance sheet of the combined company is created whereas in case of Purchase Accounting no new balance sheet is prepared. Thepurchasing company adds the assets of the acquired company to its balance sheetusing a fair market value.2. In case of Pooling Accounting it is basically the merging of two companies whereas incase of Purchase Accounting the acquired company is known as investment.3. In case of Pooling Accounting 'who is buying whom' is not clearly stated whereas incase of Purchase Accounting 'who is buying whom' is clearly stated.4. In case of Pooling Accounting it didnot record the price the acquiring company has topay for the acquisition whereas in case of Purchase Accounting it is valued using thefair market value.Answer by,Mr. Shabbir Alam


Can you keep control of a subsidiary xy?

subsidiary; has benefit of resources and man power of parent company; con: you do as told own company; you keep what you kill; its all you; con; you don't have resources or deep pocket; it can also be called as a franchise where you get everything done from choosing the name of the business to the methods and procedures they follow to get things done, this way you have a better chance to attract customers as they will definitely trust a reputed company instead of a new company, you will also get training and sometimes even finances to start a subsidiary or a franchise check out related links for more on buying franchise or subsidiary


What do you need to study to know stock markets?

Buying shares is becoming part ownership of the company . To understand the financial performance of company one needs to know Accounting.


What are the advantages and disadvantages to becoming a subsidiary as opposed to starting your own company xy?

subsidiary; has benefit of resources and man power of parent company; con: you do as told own company; you keep what you kill; its all you; con; you don't have resources or deep pocket; it can also be called as a franchise where you get everything done from choosing the name of the business to the methods and procedures they follow to get things done, this way you have a better chance to attract customers as they will definitely trust a reputed company instead of a new company, you will also get training and sometimes even finances to start a subsidiary or a franchise check out related links for more on buying franchise or subsidiary


When buying a company do you also get their equity?

Buying a company means buying the equity of company because equity is equal to assets - liabilities.


What is the capital maintenance concept for?

Protect the issued capital of the company for the benefit of creditors Coy is separate legal entity - capital belongs to coy (not to the members) A company cannot expend its funds buying back its own shares; a company can not own shares in itself directly or indirectly through an intermediary such as a subsidiary … these principles have been substantially amended by statute.


What is goodwill under financial accounting?

goodwill is the continuous buisness that a company gets from its customers/client. A business wishing to take over another business will depend on retaining all existing customers and are willing to pay "good Will" to the company they are buying out for their number of contstant customers


What is a share with reference to a company?

It is essentially buying your "share" of the company. You're buying a small percent of the country. Majority shareholders own a majority of the company.


What is the term used for a company that is buying another company?

monopoly?


Why are people buying bonds when the government is buying bankrupt companies Isn't this just as stupid?

the government won't let the company bankrupt, which means the company will raise up again. and people who are buying the bonds of that company will profit


What was considered a legal activity under Sherman anti-trust act?

A company expanding its business by buying a competing company-Apex


What is speculation buying?

Speculation buying is investing in short term investments and hoping to earn money on market fluctuations. It is different than buying stock in a company based on the company's value.