Difference between Liquidation and Bankruptcy?
Answers: Liquidation is selling everything to raise capitol. That means adjectives inventory and assets such as plant and equipment and generally the company goes out of business once everything is liquidate. Bankruptcy on the other hand means that the corporation can't retribution it's bills and they seek protection from the court under liquidation law from their creditors. The court stops all payments to adjectives creditors and organizes a plan fo the business to become profitable again and sets a schedule of who will achieve paid and when. Generally this means that creditors will not attain paid all that they are owed, but adjectives will get something and once the company emerges from ruin it continues operating normally.