Liquidation is the process in accounting by which a company is brought to an end in Canada, United Kingdom, United States, Ireland, Australia, New Zealand, Italy, and many other countries. The assets and property of the company are redistributed.

What does liquidating mean in business?

What Is Liquidation? Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due. ... General partners are subject to liquidation.

What does it mean when a store is liquidating?

A liquidation sale is a sale held by a company going out of business in an attempt to get rid of its remaining stock and assets.