1) Insolvency: A financial state where an individual or company is unable to pay their debts as they fall due, or their liabilities exceed their assets. 2)Bankruptcy: A formal legal declaration by a court declaring an individual or partnership firm incapable of repaying their debts. 3)Strike off: The removal of a company’s name from the official Register of Companies (RoC) by the Registrar or voluntarily by the company itself. 4) Winding up: The overarching legal process of bringing a company's existence to an end. 5)Liquidation: A specific stage within the winding-up process where the company's physical and financial assets are sold (converted to liquid cash) and distributed among creditors according to legal priority (the waterfall mechanism under Section 53 of IBC). You can study the definitions given in notes/module.

Answer given by Shubhamm Sir at 29-Sep-2026 06:30 PM