Liquidation is the right to receive a proportionate share of any assets remaining after the corporation goes out of business, sells its assets, and pays off its liabilities.
What is Liquidation?
In the fields of finance and economics, liquidation refers to the process of closing down a business and distributing its assets among claimants. It is an occurrence that typically takes place when a business is bankrupt, or unable to make its debt payments on time.
As business operations come to an end, the remaining assets are distributed to shareholders and creditors according to the order of priority of their claims. General partners could be dissolved.
The sale of subpar items at a price below what it would cost the company to produce them or below what the company would like to charge is referred to as liquidation.
For more questions like Liquidation click the link below:
https://brainly.com/question/13641948
#SPJ4
