The assistance of legal and accounting professionals can help smooth this process.
A liquidation marks the official ending of a partnership agreement.
Liquidation is the process of bringing a business to an end and distributing its assets to claimants.
Once the process is complete, the business is dissolved.
The partners then sell the company's assets, which can result in a gain or a loss.
The money received from selling the assets goes to pay the debts the company owes, even if the company sells the assets for less then their worth.
From March 13–16, 1943, SS and police authorities liquidate the Krakow ghetto.
Collins English Dictionary - Complete & Unabridged 2012 Digital Edition © William Collins Sons & Co. Assets are distributed based on the priority of various parties’ claims, with a trustee appointed by the Department of Justice overseeing the process.The most senior claims belong to secured creditors, who have collateral on loans to the business.To end the partnership, the parties involved sell the property the business owns, and each partner receives a share of the remaining money.Each partner's share depends on the amount of money in the partner's capital account, which is a record of the amount the partner invested and his current level of ownership in the business.