A process by which a company is dissolved through selling its assets,paying off liabilities and paying any remaining amounts,if any,to shareholders is referred to as:
A)dissolution
B)receivership
C)administration
D)liquidation

Question

Quizplus · Accepted Answer

Liquidation is the process of ending the operations of a company and selling off its assets to pay off its debts and obligations. After all the creditors have been paid, any remaining amount is distributed among the shareholders. The company ceases to exist after liquidation. Dissolution refers to the formal process of ending a company's legal existence, and it may involve liquidation but not necessarily. Receivership and administration are legal processes by which a third party is appointed to manage a company's affairs when it is insolvent or unable to meet its financial obligations.

A Process by Which a Company Is Dissolved Through Selling