'Winding up' is a statutory process whereby:

Question

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'Winding up' is a legal process used to close down a company that is insolvent and unable to pay its debts. In this process, the company's assets are sold and the proceeds are used to repay its creditors. This process is also known as 'liquidation' and is governed by specific laws and regulations. Choice C accurately describes this process. Choice A refers to the appointment of a receiver, which is a different process used to manage a business's affairs. Choice B is similar to choice C, but refers specifically to an individual's assets being sold rather than a company's. Choice D is too broad, as it refers to 'business' rather than 'company,' and could include non-incorporated entities such as sole proprietorships.

'Winding Up' Is a Statutory Process Whereby