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GCE Commerce 1990 Question 40

Question 40

Business Units

When a business is insolvent it may result in

  1. A.incorporation
  2. B.recuperation
  3. C.liquidation
  4. D.restoration
  5. E.nationalization
Show the answer and explanation

Answer: C (liquidation)

Explanation

A business that cannot pay its debts may be wound up (liquidated) and its assets sold to pay creditors.