A cash payment made by a firm to its owners when some of the firm's assets are sold off is called a:

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A cash payment made to firm's owners when some of the firm's assets are sold off is called a liquidating dividend. The payment is made to the shareholders after all debts, liabilities, and obligations of the firm have been paid off. It represents a return of capital to the investors and is not considered as ordinary income but rather as a return of investment.

A Cash Payment Made by a Firm to Its Owners