Definitions (4)

1.Accounting: (1) Combining assets, equity, liabilities and operating accounts of a parent firm and its subsidiaries into one financial statement. See also consolidated financial statement. (2) Combining two or more firms through purchase, merger, or ownership transfer to form a new firm.
2.Banking: Paying off two or more old loans with a new loan. See also consolidation loan.
3.Law: Combining two actions (involving the same parties and the same issues) into one action on court orders. Consolidation may or may not result in a single judgment.
4.Shipping: Combining several smaller shipments into a full container load or a large shipment to avail of better freight rates. Also called groupage.

Use consolidation in a sentence

  • A couple that makes a significant amount of money and has numerous assets finally gets married and decides to consider a consolidation of their earnings and assets to simplify their financial situation.

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  • The financing office is exploring consolidation ideas; they hope by consolidating fiscal departments and positions, they can eliminate redundancy and cut overhead costs, increasing revenue.

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  • A client asked me how to better organized and manage their debt and finances. I told them through consolidation of loans they could combine multiple monthly payments into one lump payment focusing on eliminating their debts one by one but as a whole for the ease of budgeting.

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