Liquidation is the right to receive a proportionate share of any assets remaining after the corporation goes out of business, sells its assets, and pays off it liabilities
When a corporation stops operating and is deregistered, its assets are sold as part of the liquidation process. The assets are sold to satisfy the claims of the shareholders and creditors, among other parties. When a business becomes insolvent and is unable to continue operating, it goes through the liquidation process.
Liquidation may be either required or optional. The phrase "liquidation" is also used to indicate that a business is prepared to sell some of its assets. For instance, a chain of retail stores might want to close part of its locations.
Learn more about liquidation here:
https://brainly.com/question/28239913
#SPJ4
