For example, a portfolio manager might decide to liquidate a position in a stock by selling all the shares of that stock held in the portfolio.A variety of reasons may induce the investor to do this, but the most common one is simply a belief that the security price will fall.When a Purchase Order is approved and submitted to the Enterprise Accounting System, the funds of the budget being charged are encumbered (funds reserved) and cannot be used for any other purchases.When encumbered funds are not used; for example, due to amount expended is less than the original amount encumbered, these funds should be liquidated (process of releasing the unused funds) in order to free the funds for other uses.And they're attracted to the high salaries and benefit packages offered in the corporate world.Or they simply are not capable of continuing the business.The reasons for this are numerous: Your heirs may want nothing to do with a takeover or succession plan.
This is not the same as its debts being discharged, as happens when an individual files for Chapter 7.
In addition, the term "liquidation" is sometimes used when a company wants to divest itself of some of its assets.
This is used, for instance, when a retail establishment wants to close stores.
Selling a company to an interested buyer is the method most commonly associated with getting out of a business.
But for many small business owners, liquidating assets is often the best or perhaps only feasible method of exiting their businesses, especially retail businesses.