What steps can you take to mitigate liquidation risk?
Liquidation risk is the possibility that a company will not be able to pay its debts and will have to sell its assets at a loss or cease operations. This can have serious consequences for the company's shareholders, creditors, employees, and customers. Therefore, it is important to take proactive steps to mitigate liquidation risk and ensure the company's financial stability and sustainability. Here are some steps you can take to reduce liquidation risk in corporate finance.