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Liquidation

The term has many definitions, but the simplest of them all is that a business is liquidated when it is terminated and all its assets and properties are used to repay the business's debts. After transforming all the assets into cash, the debts are repaid and whatever remains is distributed between the members of the business or the owners of the company. So, liquidation, in the simplest terms means that something is converted into cash. The process follows some legal steps, which are decided separately in each and every situation. In some cases liquidation represents a good option rather than going concern.