What does "liquidation value" refer to in business?

Liquidation value refers specifically to the amount that could be obtained by selling off a company’s assets quickly, often in a distressed situation. This value represents the net amount that would be realized after all liabilities have been settled from the sale of those assets. It often occurs when a business is winding down or going out of business.

In this context, the correct choice directly correlates with the definition of liquidation value, as it deals with what remains or what can be gained after all assets have been sold.

The other options describe different aspects of business valuation. The market value of all assets refers to a comprehensive assessment of what the assets could sell for under normal circumstances, rather than in a distressed sale like liquidation. A valuation report of long-term assets would focus specifically on the worth of those assets, not the company as a whole. The estimated value of an actively ongoing business pertains to its operational worth, ignoring the rapid liquidation process and focusing instead on profitability and ongoing revenue.