Liquidation
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.
