External reconstruction of a company refers to the process of restructuring a firm's financial and operational framework through external means, such as mergers, acquisitions, or major partnerships. This strategy is often employed to improve financial stability, enhance market position, or achieve growth objectives by leveraging resources and strengths from outside the organization. External reconstruction can involve significant changes in ownership, management, or business strategies to adapt to changing market conditions or to overcome financial distress.
Capital of a company is reorganized to infuse new life in the company.
External growth refers to a company buying or merging with other companies in order to expand their business. There are numerous companies that do this to add more products to their company.
What are some exteranl factor opportunities in a publishing company
External Suppliers are the contractors/distributors etc who supply goods/products/materials which a company requires to sell or create it's products and/or services.
Shareholders of Asda are considered external stakeholders, as they are individuals or entities that own shares in the company but are not involved in its day-to-day operations or management. They have a financial interest in the performance of the company but do not participate in its internal decision-making processes.
internal reconstruction no new company is formed in external reconstruction an existing company is dissolved and a new company is formed with the same shareholdders. there will be absence of liquidation expenses in internal reconstruction. liquidation expenses is present in external reconstruction.
It is similar to amalgamation though not exactly the same. In external reconstruction a new company is formed for the purpose of taking over the business of an existing sick company which has incurred huge losses and is facing financial difficulties. Existing company is wound up by selling its business to the newly formed company which is generally similarly named and owned by the same shareholders to a great extent.http://wiki.answers.com/What_is_external_reconstruction_of_companies_in_accounting#ixzz1aT6UQ0cI
It is similar to amalgamation though not exactly the same. In external reconstruction a new company is formed for the purpose of taking over the business of an existing sick company which has incurred huge losses and is facing financial difficulties. Existing company is wound up by selling its business to the newly formed company which is generally similarly named and owned by the same shareholders to a great extent.
Internal Reconstruction: 1. No new company is formed. The existing company continues as a going concern; 2. The ailing company will not gove ito liquidation under the capital reduction scheme and 3. Involves complying the requirements under the Companies Act. External Reconstruction:- 1. A new company is formed by the existing shareholder of the old company to take over the assets and liabilities; 2. The ailing company goes into liquidation and 3. There is no need to comply with particular clause in the Companies Act. Anonymous regards Bhimireddy
"External reconstruction" means repairing the outer wall of something.
1.Definition amalgamation where two or more companies doing similar business go into liquidation and a new company is formed . Absorption when existing company purchase another existing company is known as absorption.
Capital of a company is reorganized to infuse new life in the company.
INTERNAL RECONSTRUCTION- when the name of the co. remain as before but changes are made in assets and liabilities of the co. and entries are made in the books of the co. of such changes and balance sheet is amended it is called internal reconstruction. EXTERNAL RECONSTRUCTION- when such heavy changes are not possible or new capital is to be issued or there is much dissent among shareholders or by changing the name of the co. , an effort is made to give new life to the co. the co. is liquidated and a new co. is formed to purchase the assets and liabilities of old co. ,it is called external reconstruction.
Absorption:It is the process in which one existing company takes over the other existing company and merge together as a single unit.Amalgamation:It is the process in which two or more existing companies joins together and start new company with new name and identity and dissolves the existing companies.External Reconstruction:It is the process in which one existing company reconstruct itself with new name and identity.
The CPT code for a single-stage reconstruction of the right external auditory canal due to congenital atresia is typically 69631. This code specifically pertains to procedures involving the reconstruction of the external auditory canal. It's essential to verify coding details and guidelines with the latest resources or coding manuals, as coding practices may change.
An external supplier provides the materials that a company needs to create their services and products. They are a company outside of the actual business.
External auditors are required to ensure there is no fraud (hanky panky) going on in the company. If you run a company that are check by your own employees, you cannot be certain that the checks are neutral. External auditors are independent parties who provide a realistic and impartial view into the company's conduct.