5. Explain the difference between responsibility and accountability? 6. Explain the difference between Merger by Consolidation and Merger by Absorption?
Answer (1)
Difference between Responsibility and Accountability:
Responsibility and accountability are often used interchangeably, but they have distinct meanings.
Responsibility involves having a duty to deal with something or having control over someone. It is about fulfilling tasks or duties that you are required to do. Responsibility is assigned and can be shared among people. For example, a team member might be responsible for completing a project.
Accountability , on the other hand, is about being answerable for the outcomes of actions or decisions. It focuses on who is held to account if something does not go as planned. Accountability cannot be shared—only one person is accountable for a specific task. For instance, while a project team may share responsibilities, the project manager is accountable for the project's success or failure.
Difference between Merger by Consolidation and Merger by Absorption:
A merger is a strategic decision where two or more companies become one entity. There are different types of mergers, including mergers by consolidation and mergers by absorption.
Merger by Consolidation: In a merger by consolidation, two or more companies combine to form a completely new entity. The combining companies cease to exist, and a new company is formed. This type of merger allows for a new corporate structure, potentially benefiting from pooled resources, less competition, or expanded market presence. For example, if Company A and Company B consolidate, they form a new Company C.
Merger by Absorption: Conversely, in a merger by absorption, one company (the acquiring company) absorbs another company, and the absorbed company ceases to exist. The acquiring company retains its name and identity while integrating the assets and liabilities of the absorbed company. For example, if Company A absorbs Company B, Company B no longer exists as an independent entity, but its operations, employees, and assets become part of Company A.
In summary, the main difference is that with merger by consolidation, both companies form a new single entity, whereas in a merger by absorption, one existing company takes over another and continues to operate.
