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The tutorial discusses the concept of cessation of a business, which refers to the process where a business gradually goes into liquidation and ceases to operate. Cessation occurs when an organization is no longer in existence, marking the end of its operational activities. The video highlights that cessation can be likened to bankruptcy or liquidation. It also touches on the need to apply certain rules for assessing the profitability of a company during this period. Understanding the causes and circumstances leading to the cessation of a business is crucial in this context.