• FirefoxInstall the new Firefox »


    difference between liquidation,dissolution and winding up?

    a year ago 2 Answers

    Best Answer

    All of those terms refer to the final ending of a business. Liquidation is the sale of all the assets of the business or converting the remaining fixed assets and inventory into cash. Dissolution refers to ending the corporation. Winding up is a more broad term and refers to both liquidation and dissolution.
    a few seconds ago

    Other Answers

    • Winding Up: When a company makes the decision to go out of business, it generally cannot simply close its doors the instant it makes that decision. Most businesses have long-term obligations to employees, suppliers and customers as well as landlords and various other parties. A company will have to take time to end these relationships and handle any obligations it has to various stakeholders before it can close its doors. Liquidation: Once a company has wound up its affairs, it can then sell its remaining assets. Some of these assets, such as remaining inventory, may be liquidated as part of the winding up phase. Others, such as land, buildings and equipment will typically be sold only after the company has completely gone out of business. Dissolution: Dissolution would be the termination of one's business operations. Dissolution may be the cause of the liquidation. If a business "dissolves" they will in many instances have to liquidate their assets (including office furniture, computers, etc) in order to pay off creditors (or just to get rid of the stuff!).

      by Olivia Sanchez - 18 hours ago

    Recommended Articles

    Yahoo Small Business Services