Quick Definition

Liquidation is the process of bringing a business to an end and distributing its assets to claimants, typically occurring when a company is insolvent.

Examples

• 1A company files for bankruptcy and undergoes liquidation to pay off creditors.
• 2An investment fund is closed, and its assets are liquidated to distribute funds back to the investors.
• 3A retail store closes its doors permanently and sells off its inventory at reduced prices to liquidate its assets.

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