In the case of a voluntary liquidation of a business, the receiver is appointed by...
In the case of a voluntary liquidation of a business, the receiver is appointed by the
- A) creditors
- B) debtors
- C) directors
- D) shareholders
Correct Answer: A) creditors
Explanation
In a voluntary liquidation of a business, the receiver is appointed by the creditors.When a business goes into liquidation, it means that the company is shutting down and its assets are being sold to pay off its debts. In a voluntary liquidation, the decision to close the business is made by the company's shareholders or directors.
The receiver is a person or a company that is appointed to oversee the liquidation process. Their main responsibility is to collect and sell the company's assets, and then distribute the proceeds to the creditors, who are the people or organizations that the company owes money to.
In this case, the question is asking who has the authority to appoint the receiver in a voluntary liquidation. The correct answer is the creditors. This makes sense because the creditors are the ones who are owed money by the company, so they have a vested interest in ensuring that the liquidation process is handled properly and that they receive what they are owed.
To summarize, in a voluntary liquidation of a business, the receiver is appointed by the creditors. They are responsible for overseeing the liquidation process and distributing the proceeds to the creditors