Multiple choice

Winding up of a business involves

  1. realising the assets of the business

  2. paying its liabilities

  3. distributing the surplus, if any, among the partners

  4. All of the above

  5. Both (1) and (2)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Winding up of a business is a process of selling all the assets of the business, paying off creditors, distributing any remaining assets or surpluses to the partners and dissolving the business.

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