Liquidating leads to dissolving the company, and bringing all activity to a close.
It is a way for a business that has run out of funds to cover any remaining debts.
The main reason a business would choose to liquidate their assets is due to insolvency.
Insolvency essentially means that a business reaches a point where it is not able to make necessary payments when they are due.
Choosing liquidation converts the business assets to cash, which is then used to make these payments.
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