Balch videoxxx - Liquidating assets definition


A business has several options from which to choose when it liquidates its inventory.It can use the distribution channels it has always used to sell its products, with prices slashed so low that customers can't resist them.

WInding down a business is a straightforward process.

The company notifies its employees, its vendors, its creditors and its customers that it is closing up shop.

For example, if partner A has $25,000 in his capital account and partner B has $30,000 after company debt repayments, partner A will receive $25,000 and partner B will receive $30,000.

If partner A also loaned the business $15,000, though, he will receive repayment after the company pays its debts, but before the partners receive the money remaining in their capital accounts.

Either value assumes that the sale is consummated by a seller who is compelled to sell and assumes an exposure period which is less than market normal.