liquidation

**Liquidation**

Liquidation refers to the process of winding up a business by selling off its assets to pay creditors. It often occurs when a company is insolvent and unable to meet its financial obligations. The proceeds from the sale are distributed to creditors, and any remaining funds are given to shareholders. Liquidation can be voluntary or court-ordered and marks the end of a company’s operations. This term is frequently used in business, finance, and law contexts.