Liquidation, or winding up, refers to a business whose assets are converted to money in order to pay off debt. External links The Rise of a Young Business Tycoon Business Articles Categories: ‪Business‬ | ‪Academic disciplines‬ | ‪School subjects‬ ... In business and accounting an asset is anything owned which can produce future economic benefit, whether in possession or by right to take possession, by a person or a group acting together, e. ... Money Money is any marketable good or token used by a society as a store of value, a medium of exchange, and a unit of account. ... Debt is that which is owed. ...

Liquidation is one of the forms of "insolvency" in the Courts of England and Wales and is used when the other methods of corporate recovery have failed. There are two forms of Liquidation - compulsory (or Court ordered winding-up) and voluntary (creditors or members winding-up). The term Insolvency describes a financial condition experienced by a person or business entity when his (or its) assets no longer exceed his liabilities or when the person or entity can no longer meet its debt obligations when they come due. ... Schematic of court system for England and Wales The United Kingdom does not have a single unified judicial system - England and Wales have one system, Scotland another, and Northern Ireland a third. ...

The purpose of a liquidation is to realise the assets of the company in order that the creditors of the company can be paid off.

Although the initial principle of liquidation was that the creditors would be paid off pari passu, i.e. all creditors would receive an equal share of the assets of the company in accordance with the debt they were owed, there are now a number of classes: debenture or fixed charge holders, preferential creditors, floating charge holders and unsecured creditors. A debenture in finance, is a long term debt instrument used by governments and large companies to obtain funds. ... A floating charge is a form of security (i. ...

Informally, liquidation may be use to refer to any rapid conversion of an asset into cash.

• Liquidation can refer to an execution, especially one carried out by an extra-judicial death squad or a secret police agency such as the KGB.
• Liquidation is the name of a long-running night club in Liverpool.
• Liquidation is a musical term; see fragmentation.