2006-11-21 01:19:43 · 13 answers · asked by steven_huckle 1 in Business & Finance ➔ Investing
In law, liquidation refers to the process by which the existence of a company is brought to an end, and the assets and property of the company are distributed. Liquidation can also be referred to as winding-up and/or dissolution, although dissolution technically refers to the last stage of the liquidation process.
Liquidation may either be compulsory (sometimes referred to as a creditors' liquidation) or voluntary (sometimes referred to as a shareholders' liquidation, although some voluntary liquidations can also be controlled by the creditors). It also means Winding up of the operations of the Company.
In finance, liquidation is also sometimes used as convenient shorthand for converting an asset to cash-.
2006-11-21 19:51:53 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Liquidation is the process of selling off all the assets of an entity, settling its liabilities, distributing any remaining funds to shareholders, and closing it down as a legal entity. The liquidation process is a possible outcome of bankruptcy, which a company enters when it does not have sufficient funds to pay its creditors. If you want, you can also seek an advice from the liquidation company in order to do this process successfully. I read a similar idea from the blogs made by www.bankruptcyexpertssydney.com.au
2016-03-20 19:28:43 · answer #2 · answered by Charles 3 · 0⤊ 0⤋
Essentially, liquidation is a legal process whereby a firm or a business is brought to a finish. All assets are sold off and proceeds are utilized to cover its lenders when a business is liquidated. Liquidation is also known as winding up or dissolution of the company.
2014-11-10 22:19:41 · answer #3 · answered by Anonymous · 0⤊ 0⤋
In finance, liquidation means converting an asset to cash.
This is not to be confused with the legal term liquidation, which refers to the process by which the existence of a company is brought to an end, and the assets and property of the company are distributed.
2006-11-21 01:22:43 · answer #4 · answered by epbr123 5 · 2⤊ 0⤋
Hello! Liquidation means the conversion of one asset (something of monetary value, either actual or perceived) into cash-money. That said, have a wonderful day!
2006-11-21 01:26:13 · answer #5 · answered by Manny 1 · 0⤊ 1⤋
Liquidation means to sell any assets you may have for cash on hand.
2006-11-21 01:22:19 · answer #6 · answered by Lidya D 3 · 0⤊ 0⤋
liquidation
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Occurs when a firm's business is terminated. Assets are sold, proceeds are used to pay creditors, and any leftovers are distributed to shareholders. Any transaction that offsets or closes out a long or short position. Related: Buy in, evening up, offset liquidity
2014-06-10 19:48:14 · answer #7 · answered by Anonymous · 0⤊ 0⤋
to convert to cash is "liquidity", not "liquidation"! Liquidation is when the company is going out of business due to debt defaults and sells all its net assets for cash in an attempt to compensate the debt.
2006-11-21 02:01:43 · answer #8 · answered by OC 7 · 0⤊ 2⤋
A company that has been forced out of business because itz liabilities exceed its assets.
therefore the liquidator will liquidate (sell) the assets to pay his bill and the Preferential creditors. ie. Vat Tax Bank ect.
2006-11-21 01:25:17 · answer #9 · answered by Trevor J 2 · 0⤊ 2⤋
when a business goes to bankrupt all the assets must be sold to proceeds settlement from creditors.
2014-11-11 13:44:45 · answer #10 · answered by Anonymous · 1⤊ 0⤋