Types of Closure

Types of Closure Methods Used
The owner of a business can exit from or close his or her business using one of the following options:
  1. Close Up - Close the business, sell assets, pay liabilities and stop trading.
  2. Sell Up - Sell the business as a going concern.
  3. Merge - Merge the business with another one.
  4. Succession - Pass the business on to family members or others.
  5. Bankruptcy - File for bankruptcy (if not a company) and close up.
  6. Liquidation - Liquidate and close the business (if a company).

1. Close Up the Business

This simply involves closing the doors, selling off all the assets of the business, paying off all business debts and creditors. Whatever remains goes to the owners. This option is generally used when the business is not profitable and cannot continue to trade or the owner does not wish to sell it.

2. Sell Up the Business

Here the owners have a good business which should n...

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