Liquidation
Liquidation is the process of selling off assets in order to pay off creditors and other obligations. It is typically used when a company is insolvent and unable to pay its debts. In this situation, the company’s assets are sold off in order to pay off creditors and other obligations. Liquidation can also be used to wind up a business that is no longer viable.
History of Liquidation
The concept of liquidation has been around for centuries. In the United Kingdom, the term was first used in the 18th century to refer to the process of selling off assets in order to pay off creditors. In the United States, the term was first used in the 19th century to refer to the process of winding up a business. In both cases, the goal was to pay off creditors and other obligations.
Today, liquidation is still used to pay off creditors and other obligations. It is also used to wind up a business that is no longer viable. In either case, the process involves selling off assets in order to pay off creditors and other obligations.
Comparison Table
| Liquidation | Bankruptcy |
|---|---|
| Selling off assets | Debt restructuring |
| Paying off creditors | Debt forgiveness |
| Winding up a business | Protection from creditors |
Summary
Liquidation is the process of selling off assets in order to pay off creditors and other obligations. It is typically used when a company is insolvent and unable to pay its debts. It can also be used to wind up a business that is no longer viable. For more information about liquidation, you can visit websites such as Investopedia, The Balance, and the U.S. Small Business Administration.
See Also
- Bankruptcy
- Insolvency
- Debt Restructuring
- Debt Forgiveness
- Protection from Creditors
- Asset Sale
- Wind Up
- Creditor Rights
- Debtor Rights
- Reorganization
