This infographic provided by Michaels Global Trading includes the basic steps, causes, and consequences of liquidation. Liquidation is the process of bringing a company to an end and distributing its assets to the claimants. Liquidation can take place when either the shareholders appoint a liquidator to take over and become answerable to the creditors and shareholders which is voluntary, or by obtaining a court order to allege that one or more of the required grounds exist which is compulsory.

Causes of Liquidation
Common causes of liquidation include late-paying customers, a dip in market conditions, increased competition, the loss of a major customer, or even the incorrect pricing of goods.