What does Sequestration mean? And how different is it from Liquidation?


 Posted: February 11 2012

  NDBS Answers:


Sequestration is the action of taking legal possession of assets until a debt has been paid or other claims have been met, whereas liquidation is the termination of a business operation by using its assets to discharge its liabilities, in other words to pay off the creditors and settle any outstanding accounts.  If business fails to meet the agreement while assets are being held then liquidation kicks in and in this case a curator is appointed to oversee the process and facilitate all the transaction part of which will be the auctioning of goods.


  What does Fiscal Cliff Mean? 

Nadia Kalushi, Zambia

Posted: December 21 2012

I have been reading about Fiscal Cliff but failing to comprehend what it means, does it simply mean US is heading for recession or can be averted by just changing the laws, or is this one of US ways of creating Congress drama?


  NDBS Answers:


Fiscal cliff is a term used to refer to the economic effects that could result from tax increases, spending cuts and a corresponding reduction in the US budget deficit beginning in 2013 if existing laws are not changed by the end of 2012. The deficit (the difference between what the government takes in and what it spends) is expected to be reduced by roughly half beginning in the first days of 2013. This sharp decrease in the deficit in such a short period of time is known as the fiscal cliff. However, the Congressional Budget Office estimates this sudden reduction will probably lead to a mild recession in early 2013.

Source: Wikipedia



  What is New Venture Creation? 

NDBS Reader

Posted: November 19 2012

  NDBS Answers:

This is the starting and development of new enterprises which is often designated by the international term of entrepreneurship. All it means is starting a new company by individual or a group of people.  The process involved doing a research, getting the company registered and starting business operations.  


  What is Trade Deficit? 

NDBS Reader

Posted: November 19 2012

  NDBS Answers:

Trade deficit is when economic measure of a negative balance of trade in which a country's imports exceeds its exports. A trade deficit represents an outflow of domestic currency to foreign markets.  Economic theory dictates that a trade deficit is not necessarily a bad situation because it often corrects itself over time. However, a deficit has been reported and growing in the United States for the past few decades, which has some economists worried. This means that large amounts of the U.S. dollar are being held by foreign nations, which may decide to sell at any time.   A large increase in dollar sales can drive the value of the currency down, making it more costly to purchase imports.






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