Final answer:
Quasi reorganization is a financial maneuver that companies use to improve their financial standing by reclassifying assets and liabilities. Its purpose is to reduce the deficit in retained earnings, not to acquire additional investment, file for bankruptcy, or write down inflated assets.
Step-by-step explanation:
Quasi reorganization is a financial maneuver used by companies to improve their financial standing by adjusting and reclassifying certain assets and liabilities on their balance sheet.
The purpose of a quasi reorganization is not to acquire additional investment from stockholders, file for bankruptcy, or write down inflated assets. Instead, the primary purpose is to reduce the deficit in retained earnings.
This allows a company to clean up its financial statements and start anew with a stronger financial position.