When two or more companies carrying on similar business decide to combine a new company is for...........

Accountancy (Phase -I & II) Company Final Accounts

When two or more companies carrying on similar business decide to combine, a new company is formed, it is known as ..................

Amalgamation

Absorption

Internal reconstruction

External reconstruction

छोटे Courses बड़े Results

Master Company Final Accounts

Prepare through Micro-courses

Try Now

Explanation:

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.