What process involves winding up all business affairs after a partnership or corporation has been dissolved?

The process of winding up all business affairs after a partnership or corporation has been dissolved is known as winding up. This process entails settling the accounts of the business, converting assets into cash, paying off debts, and distributing any remaining assets to the partners or shareholders. Winding up is critical in ensuring that all obligations are met and that the business is dismantled in an orderly fashion, thus protecting the interests of creditors and stakeholders involved.

While liquidation refers to the actual process of selling off assets, it is just one component of the broader winding up process. Dissolution marks the formal end of the business entity's legal existence, but it does not encompass the ancillary steps needed to resolve outstanding issues. Termination could refer to the distinction of ceasing operations but lacks the specificity and legal definition of winding up in this context. Therefore, winding up accurately captures the complete process of concluding the business affairs post-dissolution.