liquidation is overstock and clearence and returned merchindise

Liquidation might also mean dissolution, but sometimes dissolution means that it is the last stage of liquidation. There are mainly three different kinds of liquidation; these are compulsory, members voluntary and creditors’ voluntary liquidation. Compulsory is often referred to as a creditors’ liquidation where as the voluntary liquidations are also good like department store returns. It all depends on the situation of the company. Wholesale Liquidation of a can also be due to insolvency, where they have not paid their debts. When it comes to finance, liquidation might often be used when changing an asset into cash.