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Hello sir
What is meant by Phoenix companies…sir would u please explain with exampleThey are not as common nowadays as they used to be
A company could, for example, have invested a lot of money in some research and development but is now facing a cash flow crisis to such an extent that the company is unable to settle its debts and sometimes even is unable to pay its employees
So the directors put the company into a creditors’ voluntary liquidation and the company ceases to exist
Meanwhile, those same directors have set up another company, often with a similar name, to acquire this “worthless” technical project at a knock-down price and this new company then starts with a clean sheet and a development project, possibly very close to the final stages of development and ready to be launched in the market
That new company has effectively risen from the ashes of the old company in the way that Fawkes, Dumbledore’s pet phoenix, spontaneously self combusts only to be reborn instantly and rise from the ashes of the former Fawkes
Does that explain it well enough for you?
Hello sir
My cbe result still not updated in myacca.wha should i do? Thank you sir your lecture help me alot ..Be patient – you may not have noticed but the ACCA is particularly busy around this time in January (April, July and October)
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