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Liabilities With Priority
Obligations that are given preference over other liabilities in the case of liquidation or bankruptcy, often secured or legally mandated.
Liquidation
The process of closing down a business by selling its assets to pay off its debts, with any leftovers being distributed to shareholders.
Reorganization
The act of restructuring a company's business or legal structure, often for reasons related to improving the company's operations, efficiency, or to adjust to financial instability.
Statement of Financial Affairs
A detailed report showing a company's assets, liabilities, and net worth, often used in bankruptcy proceedings.
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