Understanding the Fate of Company Assets
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Understanding the Fate of Company Assets

Discover what happens to a company's assets when it comes to an end. Learn about the different reasons for a company to cease operations and how assets are categorized. Test your knowledge on voluntary and involuntary company closures, bankruptcy, insolvency, and more.

Created by
@SmoothestMountainPeak

Questions and Answers

What can be considered as a company's assets when it ends?

Both tangible and intangible properties

What are the two groups a company's end can be divided into?

Voluntary and Involuntary

What could be a reason for a company to end voluntarily?

The company's goals have been fulfilled

What is the primary difference between a company ending voluntarily and involuntarily?

<p>Voluntary ending is when the company is solvent but not profitable enough, involuntary is when the company has no prospects of becoming profitable</p> Signup and view all the answers

What could be a reason for a company to end involuntarily?

<p>The company is in financial distress with no prospects of profitability</p> Signup and view all the answers

What types of assets can be considered when a company ends?

<p>Both tangible and intangible assets</p> Signup and view all the answers

What does it mean when a company is described as insolvent?

<p>The company is not profitable and has little hope of recovery</p> Signup and view all the answers

What could be a possible scenario for a company to end voluntarily?

<p>The company's goals have been fulfilled</p> Signup and view all the answers

What can be a reason for a company to end involuntarily?

<p>The company's owners started a business, but they have no one to step in their footsteps</p> Signup and view all the answers

What is the term used for the process of selling a company's assets and distributing the income to creditors?

<p>Winding up</p> Signup and view all the answers

Which term is used in the US for both human and legal person insolvency?

<p>Bankruptcy</p> Signup and view all the answers

What is the final step in the process of ending a company, applicable only to companies?

<p>Dissolution</p> Signup and view all the answers

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