Difference between revisions of "Liquidation"
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According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]], | According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]], | ||
:[[Liquidation]]. Occurs when the assets of a division are sold off piecemeal, rather than as an operating entity. | :[[Liquidation]]. Occurs when the assets of a division are sold off piecemeal, rather than as an operating entity. | ||
| + | According to the [[Strategic Management by Parnell (4th edition)]], | ||
| + | :[[Liquidation]]. A corporate-level retrenchment strategy in which a firm terminates one or more of its business units by the sale of their assets. | ||
==Related concepts== | ==Related concepts== | ||
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*[[Principles of Accounting]]. | *[[Principles of Accounting]]. | ||
| − | [[Category: Septem Artes Administrativi]][[Category: International Accounting]][[Category: Articles]] | + | [[Category: Septem Artes Administrativi]][[Category: International Accounting]][[Category: Articles]][[Category: Strategic Management]] |
Revision as of 10:48, 12 July 2020
Liquidation is the process that occurs when a business is terminated, the assets are sold, and liabilities and partners are paid off.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Liquidation. Occurs when a business is terminated, the assets are sold, and liabilities and partners are paid off.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Liquidation. Occurs when the assets of a division are sold off piecemeal, rather than as an operating entity.
According to the Strategic Management by Parnell (4th edition),
- Liquidation. A corporate-level retrenchment strategy in which a firm terminates one or more of its business units by the sale of their assets.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
