Answer:
False
Explanation:
Liquidation refers to the process by which a business is brought to an end and its assets are distributed among the claimants. It occurs when a company can no longer pay its obligations when due. The company is now said to be insolvent.
Some causes of liquidation in business are:
a lack of knowledge about the business
inadequate income to pay bills and take care of running cost
chronic indebtedness by clients
an extremely competitive market
Hence, when a financially troubled company is liquidated, the business has officially come to an end. It is not a means to operate for a while in order to build a sounder financial base
