What is the process of corporate liquidation?

The process of corporate liquidation refers specifically to the dissolution of a corporation, where its business activities cease, and its assets are distributed to stakeholders, typically following the resolution of debts and obligations. This process usually occurs when a corporation is no longer able to operate profitably or when the owners decide to end the business. Liquidation can involve several steps, such as valuing the corporation's assets, settling any outstanding debts, notifying creditors, and distributing the remaining assets to shareholders based on their ownership percentages.

In contrast, projecting future profits for investments involves financial forecasting and planning, which is focused on growth and expansion rather than winding down operations. Expanding into new markets is a strategic growth initiative aimed at increasing market presence and revenue, which is also not related to the cessation of a corporation's operations. Lastly, reinvesting profits back into the corporation is a strategy intended to foster growth and development rather than liquidate assets. Therefore, the correct understanding of corporate liquidation distinctly centers on the dissolution and asset distribution process, highlighting the importance of option B.