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What is Internal reconstruction in company?
Capital of a company is reorganized to infuse new life in the company.
Define external growth?
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 external opportunities for a publishing company?
What are some exteranl factor opportunities in a publishing company
What are external suppliers?
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.
What is internal reconstruction of a company?
Internal reconstruction is an arrangement made by companies whereby the claims of share holders, debenture holder, creditors and other liabilities are reduced or altered, so that the accumulated losses are written off, assets are valued at its fair value and the balance sheet shows the true and fair view of the financial position.
Distinguish between internal and external reconstruction of a company?
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.
What is 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
What is external reconstruction of companies in accounting?
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.
Distinguish between internal and external reconstruction of?
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
What is process of external recontruction?
"External reconstruction" means repairing the outer wall of something.
Difference between amalgamation and absorption and external reconstruction?
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.
What is Internal reconstruction in company?
Capital of a company is reorganized to infuse new life in the company.
Distinguish between internal and external reconstruction?
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.
What is amalgamation and absorption and external reconstruction in accounting?
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.
What is the role of an external supplier?
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.
What do you mean by internal and external liability of the company?
internal liability mean that company will pay salary, so salary is internal liability, and the company will pay interest to bank it is external liability.
Why must a public company have an external auditors?
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.
