Winding up a firm's operations,selling off its assets,and distributing the proceeds to creditors is called

Question

Quizplus · Accepted Answer

Liquidation refers to the process of winding up a company's operations, selling off its assets, and distributing the proceeds to creditors. Reorganization refers to a restructuring of a company's operations to improve its financial health and avoid bankruptcy. Dissolution refers to the legal process of formally ending a company's existence, which may or may not involve liquidation. Therefore, B is the correct answer.

Winding Up a Firm's Operations,selling Off Its Assets,and Distributing the Proceeds