A major difference between liquidation and reorganization is: under reorganization, the firm is terminated as a going concern, while in liquidation, the firm has a chance to remain a going concern. under liquidation, only profitable operations are terminated and, under reorganization, only non-profitable operations are terminated. under liquidation, the firm is terminated as a going concern and, under reorganization, the firm has the chance to remain a going concern. liquidation only deals with current assets and reorganization only consolidates debt. None of the above