EDUCATIONAL WORLD

  Amalgamation Meaning When two or more companies go into liquidation and a new company is formed to take over the business of the liquidating companies,it is called amalgamation. Definition According to Halsbury's Laws of England, " Amalgamation is a blending of two or more existing into the undertaking,the shareholders of each blending company becoming substantially the shareholders in the company which is to carry on the blended undertakings.there may be amalgamation either by transfer of two or more undertakings to a new company or by the transfer of one or more undertakings to an existing company Objectives   Elimination of competition Price maintenance by regulating output Securing larger share of the market Equitable distribution of what is produced Building-up goodwill Avoiding duplication and reducing costs Introducing schemes of rationalisation Promoting research and development

  Financial appraisal/analysis Financial appraisal is a method of evaluating the viability of a proposed project by assessing the value of net cash flows that results from its implementation. Financial appraisal/analysis is defined as " the process of discovering economic facts about a project on the basis of interpretation of financial data". Objectives of Financial appraisal Deciding the financial feasibility of the project. Identifying and estimated the financial cash flows Assessing the financial sustainability. Determining that part of investment cost which will not be recouped by net revenue. Assessing the funding sources for the project. Examining the return on capital for different sources of fund