Liquidation Strategy Homework Help

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Liquidation Strategy is a type of retrenchment strategy that is considered to be the last option available for the company, as it is never a desirable choice and is really extreme for the company. Liquidation Strategy Homework Help tells us that liquidation initiates the process of ending a business.The company has to shut down and sell its assets to the claimants.Liquidation Strategy Homework Help informs us about the disadvantages of this strategy which include loss of good workers and employees along with the closure of opportunities for the firm. It is also considered by the company to avoid the dishonor of failure.

Consequences of Liquidation Strategy

From the above paragraph, it is quite clear that liquidation strategy isn’t a pleasant step for any company. It has many unwanted consequences which are mentioned in Liquidation Strategy Homework Help
• Loss of company assets– The liquidator has to sell off all the company assets to collect enough funds to repay the company creditors and raise cash for liquidation fees. Liquidation Strategy Homework Help tells us more about loss of company assets.
• Staff becomes redundant– After liquidation, the valued staff members tend to look for job opportunities elsewhere, as the liquidator makes all the employees redundant.Liquidation Strategy Homework Help shall provide some more information related to the topic.
• Personal liability of directors for company debts– If the directors are responsible for the liquidation of the company in order to avoid repaying the creditors, they are the ones responsible to pay all the company debts.
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