Question 2(a)
[Maximum number: 2]
Define the term liquidation.
CAIE A-Level Business 5.1.1 Need for finance
Practise linking start-up, growth and survival finance needs to cash shortages, profit limits and risks of business failure.
How this is tested
- explain a business reason for needing finance, linked to start-up, growth or survival
- distinguish short-term cash needs from longer-term finance for expansion
- analyse how lack of finance may lead to liquidation or bankruptcy