Question
When two companies decide to combine their operations to
achieve synergies and enhance overall efficiency, which corporate restructuring strategy are they likely implementing? Read the following passage and answer the next 4 question (Q27-Q30) Corporate restructuring is an action taken by the corporate entity to modify its capital structure or its operations significantly. Generally, corporate restructuring happens when a corporate entity is experiencing significant problems and is in financial jeopardy. The process of corporate restructuring is considered very important to eliminate all the financial crisis and enhance the company’s performance. The management of the concerned corporate entity facing the financial crunches hires a financial and legal expert for advisory and assistance in the negotiation and the transaction deals. Usually, the concerned entity may look at debt financing, operations reduction, any portion of the company to interested investors. In addition to this, the need for corporate restructuring arises due to the change in the ownership structure of a company. Such change in the ownership structure of the company might be due to the takeover, merger, adverse economic conditions, adverse changes in business such as buyouts, bankruptcy, lack of integration between the divisions, over-employed personnel, etc.Solution
When two companies decide to combine their operations to achieve synergies and enhance overall efficiency, they are likely implementing a merger strategy. Mergers can take various forms, such as horizontal, vertical, or conglomerate mergers, depending on the nature of the combining entities.
Rohit invested a sum on compound interest at 'R%' per annum (compounded annually), which amounts to ₹8,000 and ₹11,520 in 2 years and 4 years respec...
- Divya invested Rs. 'd' in scheme A and Rs. (d + 850) in scheme B for 2 years each. Scheme A offers 13% simple interest per annum, while scheme B offers 9% ...
A and B started a business with initial investments of Rs. 25000 and Rs. 40000 respectively. After one year, a profit of Rs. 3250 is earned. A being a w...
The difference between the compound interest, compounded annually and simple interest on Rs. ‘P’ at the rate of 25% p.a. for 2 years, is Rs. 100. If...
The interest received by investing Rs. 3000 for 2 years at compound interest of 20% p.a., compounded annually, was re-invested for 3 years at simple int...
An amount of 'a' is invested at an annual interest rate of 18% with simple interest, and another amount of 'a + 750' is invested at an annual interest...
A sum of ₹12,000 is invested at a rate of 5% per annum for 3 years. What will be the total amount at the end of the investment period, including inter...
John borrowed some money from Alex at 10% simple interest per annum. He lended this money to Shaun at 20% compound interest per annum, and made a profit...
- A sum of money placed at simple interest becomes Rs. 14,400 in 4 years and Rs. 18,000 in 7 years. What is the initial amount invested?
When 19.62% of Pawan's monthly salary, which is the total of 15721.33 and 19678.9, is equally distributed among four different SIPs, what is the approxi...
