3 TYPES OF BUSINESS COMBINATION
- Merger
- Holding company
- Consolidation
3 REASONS FOR MERGERS
- To meet with more consolidated position a leading, a strong 3rd 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
