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Explain Liquidation and Insolvency Process

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Simple Liquidation
Explain Liquidation and Insolvency Process

Liquidation and insolvency are the most common events happening to the business struggling with finances during this pandemic. The inability of businesses to cope with drastic changes in demand and supply chains has caused hundreds of businesses to face insolvency. You may think that both these terms are the same thing. A deep understanding will reveal that liquidation is a wide event. Insolvency is just one of the factors that can contribute to it. Today we will try to provide you deeper insights into both liquidation and insolvency so that you can distinguish these terms better. Though we can relate these terms to both individuals and companies, we will try to stick with the company’s perspective while discussing the things in this article.

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