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What Is Reorganization?

2010/12/23 15:43:00 35

Restructuring Accounting Finance

Reorganization refers to the planned implementation of the enterprise's organizational form, scope of operation or mode of operation, which is formulated and controlled by the enterprise.

The restructuring matters include:


(1) selling or terminating part of the business of an enterprise.


(2) the organization structure of enterprises is larger.

adjustment


(3) close part of the business premises of enterprises or pfer business activities from one country or region to other countries or regions.


Enterprises should combine reorganization with merger and debt restructuring.

Difference

Open.

Restructuring is usually an enterprise.

inside

The adjustment and combination of resources seek the maximization of the effectiveness of existing assets; the merger of enterprises is the capital reorganization and scale expansion among different enterprises; and debt restructuring is the creditor's concession to the debtor, the debtor reduces the debt burden, and the creditor reduces losses as much as possible.

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