The Process of Going Out of Business by Selling the Entity's

question 130

True/False

The process of going out of business by selling the entity's assets,paying its liabilities,and distributing any remaining cash to the owners based on their equity balances is known as liquidation.

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Definitions:

Supply Chain

The network of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer.

Net Profit Margin

A financial ratio indicating the percentage of revenue that remains as net profit after all expenses are deducted from total revenues.

Leverage

The use of various techniques or borrowed capital (debt) to increase the potential return of an investment.

Outsourcing

Transferring a firm’s activities that have traditionally been internal to external suppliers.