The reverse merger, forward merger and subsidiary merger are explained below along with their advantages and disadvantages.Reverse mergerIn reverse merger, A private firm becomes a public company.A smaller company obtains a bigger company.Parent company mergers with its subsidiary.Company in losses obtains the company in profits.AdvantagesThe advantages of reverse merger are ... Read More

Irrespective of size or its nature every firm or organization needs growth and expansion and these can be done by the way of integration followed by firms or organizations. The main integrations followed by companies or vertical and horizontal integration.Horizontal integration involves integration of two companies in same business line ... Read More

In business, whether you are buyer or seller, the transactions can be made either in purchase and sale of assets or in purchase and sale of common stock. The buyer or seller can choose their option (there can be various reasons in choosing their option).An asset purchase transaction is the ... Read More

The terms acquisition, takeover, merger and amalgamation are explained below −AcquisitionAcquisition is a purchase of more than 50% shares/stake of another company.Payments can be made in either cash or stock or by both.Friendly approaches or hostile approaches are used in acquisition.Friendly approach means Boards of directors support the acquisition.Hostile approach ... Read More

Acquisition is the process of acquiring one or more companies by acquirer without affecting the acquirer brand name or autonomy. The targeted company or companies will exist and continue their operations but they have to work under acquirer name and their terms. This ownership change takes place.The main objective of ... Read More

Merger is nothing but an agreement between two or more organizations or companies to form as a one company or organization.The main objective of merger is to gain more market share or to enter into new market areas or sectors and maximize their profits. It also helps companies to restructure ... Read More

The main objective of both merger and acquisitions are the same, that is to restructure their corporate order. That means both are involved in joining two or more than two business entities to restructure their corporate structure according to changes in market or in their sector.MergerMerger involves combining an individual ... Read More

Following are the components of financial management −AgreementThis is the agreement between the donor (who donates the funds) and the receiver (who accepts the funds). Mostly, the receiver may be an organization or a company.This document is very important for the accounting department.It contains deliverables (quantity and quality of deliverables), ... Read More

The different branches of accounting are explained below −Financial accountingRecords daily transactions and gives the financial picture of business.Preparation of trial balances, profit and loss accounts and balance sheets.Creditors, financial institutions, banks, etc., use this type of accounts.Cost accountingRecord, present and do the analysis of manufacturing costs.With the help of ... Read More

ProblemXYZ Enterprise Company has a pass book balance of Rs. 58700/- and cash book balance of Rs.68500/- as on 31st march 2014. Compute the correct cash book balance for the transactions and prepare a reconciliation statement.The transactions are as follows −Cheque issued (personal account) of enterprise debited to firm's account ... Read More