Define liquidating assets

When a company’s assets are liquidated, or converted to cash, the cash is then used to pay off creditors.But there are different classes of creditors that determine in what order they are paid.

If that does not cover the debt, they will recoup the balance from the company’s remaining liquid assets, if any. These include bondholders, the government (if it is owed taxes) and employees (if they are owed unpaid wages or other obligations).Liquidation is the process of bringing a business to an end and distributing its assets to claimants.Once the process is complete, the business is dissolved. When a huge retailer has to close all of its stores, it liquidates everything, meaning the inventory and even the shelves and display cases are sold to bargain-hunters, to raise money for the company to pay its debts.Liquidate comes from the Latin liquidare, meaning “to melt,” or “to clarify.” A recipe might ask you to liquefy the butter, not liquidate it, because liquidate has to do with assets.There are variety of reasons to close a business, including poor results, owner retirement or poor health, or the loss of a franchise arrangement.

575

Leave a Reply

  1. is camilla belle still dating joe jonas 14-Jul-2016 14:08

    In the meanwhile a new model, the SRT8100, is taking it's place.