Business Combination

3 TYPES OF BUSINESS COMBINATION

• Merger
• Holding company
• Consolidation

3 REASONS FOR MERGERS

• To meet with more consolidated position a leading, a strong 3^rd competitor
• To cut on overhead or to avail both companies as one, of the top talent in each
• To cut down overhead expenses by integrating the sources of supply

3 METHODS OF VALUATION

• Capitalization of earning concept
• Asset values
• Actual/imputed market prices

7 CONTENT OF INSURANCE POLICY

• Parties between whom the contract is made
• Amount to be insured except in the case of open running policies
• The rate of premium
• Property of life insured
• Interest of the insured in property insured
• The risk insured against
• The period during which the insurance is to continue

2 TYPES OF INSURANCE COVERAGE

• Property and casualty insurance
• Life insurance

4 TYPES OF PROPERTY AND CASUALTY INSURANCE

• Fire
• Casualty
• Marine
• Fidelity and surety

5 COVERAGE AND PROOF OF LOSS TO FIRE

• To give immediate notice in writing of any loss
• To protect the property from further damage
• To separate the damaged from the undamaged
• To make and furnish the company with an inventory of the damage and undamaged goods
• To submit a formal proof of loss

3 TYPES OF ACCIDENT AND HEALTH INSURANCE

• Commercial
• Non-cancelable
• Group

2 ADVANTAGES THROUGH CAPITALIZATION

• Arrearages of preferred dividends may be limited
• The dividend rate on preferred may be reduced

5 COMMON OBJECTIVES OF PURPOSES OF REORGANIZATION

• To discover the causes behind operating and managerial difficulties besetting the corporation
• To be able to lessen fixed changes that has continued to burden the corporation
• To minimize, if not eliminate, floating debt and moreover, prolong maturities
• To raise new funds that may be needed to supplement working capital
• To simplify the capital structure and thus facilitate financing in the future

3 REASONS OF CAPITALIZATION OF PREFERRED STOCK

• Desire to eliminate arrearages
• Decrease the rate of dividend
• Eliminate the outstanding preferred stock