Question

Someone legally appointed to sell off the assets of a bankrupt firm is called

• A. An Auctioneer
• B. A Liquidator
• C. A Terminator
• D. An advocate

Answer 1

The Correct Option is B

In the context of business and finance, particularly when dealing with situations involving bankruptcy, the term used for an individual appointed to manage and sell off the assets of a bankrupt firm is a Liquidator. Here's why this is the correct answer:

1. An auctioneer is a person who conducts auctions by accepting bids and declaring goods sold. While they may be involved in selling assets, they are not specifically appointed to manage bankruptcy scenarios.
2. A liquidator is specifically authorized and appointed to oversee the process of winding up a company's affairs after it has been declared insolvent. Their primary role is to sell the company's assets to pay off debts and distribute any remaining funds to creditors. Hence, this is the correct choice for someone legally appointed to handle a bankrupt firm’s assets.
3. A terminator is not a recognized position in the context of business or bankruptcy. This term does not apply to the process of liquidating a company's assets.
4. An advocate is a legal professional who represents clients in legal matters. While they might provide legal advice in bankruptcy cases, they are not the ones tasked with selling off assets.

The role of a liquidator is pivotal in ensuring that all assets are sold in an orderly manner and that the proceeds are used to settle any outstanding debts. This helps in fair distribution of funds and orderly closure of a bankrupt firm.

Therefore, the correct answer is A Liquidator.