Other than when the venture is operating in a declining industry, it is difficult to think of cases where the disadvantages of liquidation outweigh the advantages.

Question

Quizplus · Accepted Answer

Liquidation can have several disadvantages that outweigh its advantages, not just in declining industries but also in cases where the venture has significant potential for turnaround, where liquidation might result in significant job losses, where the liquidation value is less than the ongoing concern value, or where stakeholders prefer restructuring or reorganization to preserve the business or brand value.

Other Than When the Venture Is Operating in a Declining