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      Question

      What is the key difference between internal and external

      reconstruction?
      A Internal reconstruction increases liabilities; external reduces them. Correct Answer Incorrect Answer
      B Internal reconstruction results in liquidation; external does not. Correct Answer Incorrect Answer
      C External reconstruction does not require shareholder approval. Correct Answer Incorrect Answer
      D External reconstruction forms a new company; internal does not. Correct Answer Incorrect Answer

      Solution

      The correct answer is D

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