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Merger / Demerger – How much do you Know?

Merger & Demerger

A business passes through various phases during its lifetime. Change is the rule for the world. Sometimes the position may be so much solid that one can acquire the business of others whereas in the times of hardships we may go in liquidation or may shutdown the business.

Merger and demerger are some commonly accepted methods of business expansion. Merger is a process in which two or more companies join hands to pool their limited and scarce resources for achieving their goals. Similarly, demerger is adopted when the business is carried out on a large scale and it is not possible to manage the whole business under the supervision of same management, so, a unit or a project is separated for achieving the goals. A separate entity with different or same management is formed to carry out business in the most effective and efficient manner.

Here is a quiz on the various aspects of the merger and demerger transaction.

Take This Challenge !

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