Liquidation of a business involves selling all of the firm's fixed assets (such as machinery, properties and inventory), thus liquidating its assets. Upon repayment of the company's debt, any profits are paid to the company's owner. Upon liquidation, the company ceases to exist.
Liquidation of a business can be done as voluntary liquidation initiated by the business owners or as forced liquidation which can be initiated by public authorities if the company does not comply with the legislation, such as timely filing of the annual report.
In finance and economics, liquidation is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations as and when they come due. The company's operations are brought to an end, and its assets are divvied up among creditors and shareholders, according to the priority of their claims.
The causes of the rise of tensions between the American colonists and the British government in the period 1754-1776 was the British attempts to impose high taxes and control over the colonies without giving them representation in parliament.