Top Answer
User Avatar
Wiki User
Answered 2014-06-20 21:01:12

Creditors and owners lose when it comes to liquidation because the seller is trying to get rid of the items quickly. Since they have to sell quickly, they are generally do so at a discount.

User Avatar

Your Answer

Still Have Questions?

Related Questions

Is owners capital a liability?

Yes owners capital is liability for businss towards its owners to be return back at the even of liquidation of business.

Are stockholders of a corporation considered creditors of corporation?

No, Considered Owners

What is the amount of the capital?

Capital is the amount which invested by the owners of business in business and refundable by business at the time of liquidation.

What is total owners equity?

Total owner equity is the total amount invested by the owners of the business in business and which is refundable by the business to it's owner at time of liquidation.

How do a company's creditors protect themselves from the concept of limited liability in the event of the company's insolvency?

Commonly, creditors may insist that an LLC's owners give a personal guaranty as a condition of the debt.

Who are the main creditors of a corporation?

Bondholders are creditors of a corporation; they have loaned the corporation money and received bonds as evidence of the corporation's. Stockholders, both common and preferred, are owners of a corporation. (STOCKHOLDERS ARE NOT THE CREDITOR)

Who are the user's of accounting information?

End users of the accounting are owners, Management, Creditors, Government, Employee & also people.

What is a lockout in football?

Usually a disagreement between players and owners about contracts and a salary cap. The owners lock the players out of the stadium. The owners usually work together.

Importance of financial statements for creditors?

Importance of Financial statements are declarations of information in financial terms about an enterprise that are believed to be fair and accurate. They describe certain attributes of the enterprise that are important for decision makers, particularly investors (owners) and creditors.

Is one characteristic of a corporation is that its owners are personally liable for any losses incurred by the business?


Are shareholders owners of company?

i think shareholders are the owners of the company because they are the contributors of the capital which is used to run the business and they share losses and profits of the company

Who are the primary stakeholders in a public company?

Primary stakeholders of a public company would include stock holders, investors, owners, creditors, suppliers and others whom have something to lose in the company. Primary stakeholders of a public company would include stock holders, investors, owners, creditors, suppliers and others whom have something to lose in the company.

What do dogs usually do?

dogs usually play with there owners or go for a walk

List 5 users of accounting information?

1 - Owners 2 - Creditors 3 - Financial institutions 4 - Investors 5 - Public

Can previous owners of a vehicle take car back?

Not usually, once you are the owner of a vehicle and the previous owners name is not on the title, they will usually have rights to that vehicle.

If you and your parents are co-owners in a home are they responsible for your credit card debt if you suddenly die?

No. If the property is titled correctly (Joint Tenants With Rights of Survivorship) then it cannot be attached by creditors upon the death of any of the owners.

Does home owners insurance usually pay for septic tank failure?

No. That's an owners maintenance issue.

Can a C Corp file bankruptcy and the owners protect their assets even if they signed personal guarantees with some banks?

No, the owners assets WOULD still be subject to seizure from creditors for all debts that were PERSONALLY guaranteed. The only way to protect personal assets would be for the owners themselves to file personal BK.

Where were slave cabins usually located?

near the owners mansion

Who are accountable for housing associations?

Housing associations usually answer to owners.

What major advantages of corporations have given rise to their dominance as form of business organization?

The biggest advantage is that the owners can reduce their personal risk while maintaining individual profit. For example, if you incorporate, and the corporation goes out of business owing money, then the creditors (people that are owed money) have to go after the corporation's assets, and not the owners. The same applies in a lawsuit. If a person has a sole proprietorship, and they go out of business, they can lose their personal assets such as their house to creditors.

Does home owners insurance cover money stolen from a school PTO?

No, It is the schools choice to obtain coverage for losses from theft on school property or not. Your homeowners insurance would not cover the losses of another party.

Does a general warranty deed that is alread transferred to grantor protect it from the previous owners creditors?

First, property is transferred by deed to the grantee. If the property is transferred to avoid creditors the creditors can still attach it through a court process. If there are already judgment liens, tax liens and mortgage liens recorded against the property then you would acquire it subject to those liens. They do not go away if you transfer the property to someone else.

When is a ferret awake in Indiana?

Ferrets are usually awake depending on their owners

What are all the Federalists beliefs?

The federalists, led by the likes of Alexander Hamilton, James Madison, and George Washington, were usually property owners, creditors and merchants. They were the "elites" of post colonialism and believed in a strong central government. They believed that the elites should govern post-revolution America, because they are the ones with the knowledge and the wealth.

Still have questions?