A business firm ceases to exist as a going concern as a result of which one of the following?
A)divestiture
B)share repurchase
C)liquidation
D)reorganization
E)capital restructuring

Question

Quizplus · Accepted Answer

Liquidation is the process of a business selling off its assets and distributing the proceeds to its creditors and shareholders. This generally occurs when a business is no longer able to continue operating as a going concern and is unable to meet its financial obligations. Divestiture, share repurchase, reorganization, and capital restructuring are all actions that a business may take while still operating as a going concern.

A Business Firm Ceases to Exist as a Going Concern