liquidation
Liquidation is the formal process where a liquidator is appointed to wind up the affairs of a company. This involves taking control of the company's assets, ceasing its operations and distributing the assets to claimants.
Liquidation is a formal process initiated when a company can no longer pay its debts. A liquidator, a trained professional, is appointed to take charge of the company. Their job is to sell the company's assets, like property, equipment, and inventory, to pay off debts. This process leads to the closure of the company. Liquidation is often a last resort and indicates the company is insolvent, meaning it can't cover its debts.
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