• Liquidation refers to the process of liquidating the assets of an enterprise that has gone out of business.
  • The sole purpose of the liquidated enterprise is to sell off the assets, pay off creditors and transfer the remaining assets to the owners.
  • The two main types of liquidation are forced liquidation and voluntary liquidation.
  • Liquidation of a business is not the same as bankruptcy, although it is usually the end result of bankruptcy.