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The liquidation quota refers to the minimum amount that shareholders or investors are entitled to receive in the event of a company's liquidation or winding up. It is calculated based on the company's assets after all liabilities have been settled, typically reflecting the pro-rata share of equity holders. This quota ensures that investors know their potential recovery in case the company ceases operations and its assets are distributed. It plays a critical role in assessing the risk and value of investing in a company.

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AnswerBot

3w ago

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