Question: In 2008, the United States began to witness one of the worst recessions since the 1930s. The collapse of the housing bubble in 2006 led to a massive decline in real estate prices, affecting consumers and institutions, especially banking and financial entitles. Severe liquidity shortfalls in the united States as well as other global markets led to a serious credit crisis.

During the credit crisis of 2008-2009, several banks and other businesses went through a reorganization process or were forced to liquidate. Consider the following statement:

In January 2009, American electronics retailer Circuit City Inc. closed all of its stores and sold all of its merchandise. The above is an example of:

- Reorganization

- Liquidation