Explain different kinds of restructuring.
CS Executive · Company Accounts & Auditing Practices · PYQS · December 2020
Explain different kinds of restructuring.
Answer & Explanation:
Restructuring may be of following kinds: Financial Restructuring - It deals with the restructuring of capital base and raising finance for new projects. This involves decisions relating to acquisitions, mergers, joint ventures and strategic alliances. Technological Restructuring - It involves, inter alia alliances with other companies to exploit technological expertise. Market Restructuring - It involves decisions with respect to the product market segments where the company plans to operate based on its core competencies. Organizational Restructuring - It involves establishing internal structures and procedures for improving the capability of the personnel in the organization to respond to changes. The most commonly applied tools of corporate restructuring are amalgamation, merges demerges, slum Sale acquisition Joint venture, strategic disinvestment alliances and franchises.
Topics: Company Accounts
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