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Answer Posted / kavya
AMALGAMATION IS THE PROCESS BY WHICH TWO COMPANIES, WHETHER MAKING PROFIT OR LOSS IN THEIR OWN BUSINESS, DECIDE TO AMALGAMATE (COMBINE)THEIR BUSINESS AND THUS START A NEW BUSINESS ENTITY OR A COMPANY..
FOR EXAMPLE:A LTD. & B LTD. WANTS TO AMALGAMATE THEIR BUSINESS SO THEY WILL FIRST LIQUIDATE THEIR BUSINESS & THEN START A NEW COMPANY CALLED AB LTD.
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