The following are typical types of liquidation, except;a.Debtor`s Voluntary Liquidationb.Members` voluntary liquidationc.Orderly liquidationd.Compulsory liquidation
Question
The following are typical types of liquidation, except;a.Debtors Voluntary Liquidationb.Members voluntary liquidationc.Orderly liquidationd.Compulsory liquidation
Solution
The answer is c. Orderly liquidation. This is not a typical type of liquidation. The other three options, Debtor's Voluntary Liquidation, Members' voluntary liquidation, and Compulsory liquidation, are all recognized forms of liquidation.
Here's a brief explanation of each:
a. Debtor's Voluntary Liquidation: This is when the directors of the company realize that the company can no longer go on business due to its debts.
b. Members' Voluntary Liquidation: This happens when the shareholders of a company decide to close it even though the company can still meet its liabilities.
d. Compulsory Liquidation: This is a legal process where the assets of
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