Amalgamation Number of questions: 6 Types of questions: Multiple choice Time to complete: 2 minutes Click on 'Next' button when you are ready. What does the term 'amalgamation' refer to in the context of businesses? The process of creating a new company by combining two or more companies The process of selling a company's assets to another company The process of merging a company's product lines with another company The process of two companies sharing their management teams None Which of the following is a potential advantage of amalgamation? Reduced competition in the market Increased management complexity Difficulty in merging corporate cultures Lower likelihood of cost savings None How does amalgamation benefit companies in terms of economies of scale? By making it more difficult to produce goods at a lower cost By increasing the company's overall debt By allowing the combined entity to achieve greater production efficiency By making it easier for the company to secure funding None What is a potential disadvantage of amalgamation related to employees? Better job security Increased opportunities for promotion Higher employee morale Job losses due to redundancy None Which of the following is a potential effect of amalgamation on the market? Increased competition Lower market concentration Creation of monopolies or oligopolies Decreased barriers to entry for new businesses None Which of the following is a potential benefit of amalgamation for shareholders? Increased risk of financial loss Reduced liquidity in the stock market Enhanced shareholder value Higher likelihood of corporate fraud None Enter your email address Name
Purchase consideration Number of questions: 5 Types of questions: Multiple choice Time to complete: 2 minutes Click on 'Next' button when you are ready. When two or more companies carrying on similar business decide to combine and form a new company, it is known as: External reconstruction Amalgamation Internal reconstruction Absorption None What does the term "Purchase Consideration" refer to? The process of deciding what to buy in a supermarket The total amount of money spent on purchasing assets The price paid or payable for acquiring a company or its assets The cost of maintaining a company's assets None Which of the following is NOT a method of determining Purchase Consideration? Net Asset Value (NAV) Method Net Payment Method Discounted Cash Flow (DCF) Method Lump Sum Method None In the Net Asset Value (NAV) Method, what is used to determine the Purchase Consideration? The difference between the assets and liabilities of the company The discounted future cash flows of the company The price-to-earnings ratio of the company A fixed lump sum amount agreed upon by both parties None What is the primary advantage of the Lump Sum Method? It provides a fair valuation based on the company's future earnings It is the simplest method and involves less negotiation between the parties It takes into account the company's financial position and performance It calculates the value of the company based on its current market price None Enter your email address Name
Quiz – Call in arrears Number of questions: 5 Types of questions: Multiple choice Time to complete: 2 minutes Click on 'Next' button when you are ready. What computes the call in arrears? Call amount partially paid by investors Call amount not paid by investors Call amount fully paid by investors Option 1 and 2 None Which formula is used to calculate call in arrears? Subscribed share capital – called up share capital Issued share capital – paid up share capital Called up share capital – paid up share capital Authorized share capital – paid up share capital None Which one is most suitable meaning of called up share capital? Amount of issued capital which is yet to be paid Amount of share capital called for payment by the company Part of issued share capital which is not paid by subscribers None of the above None What do you understand by paid up share capital? Part of subscribed share capital which is yet to be paid by investors Part of called up share capital which is yet to be paid by investors Part of Issued share capital which has been called by the company Part of called up share capital which has been paid by investors None Call in arrears is also known as: Paid call Partially paid call Fully paid call Unpaid call None Enter your email address Name
