Liquidation - Meaning, Definition & English Examples
Liquidation is the process of selling off assets to pay debts or convert them into cash, often when a business closes or faces financial difficulties. It can also refer to settling financial obligations.
Definition:
The process of closing a business and selling its assets to pay debts.
Synonyms:
dissolution, winding up, closure, termination
Part of Speech:
noun
Antonyms:
establishment, formation
Common Collocations:
company liquidation, forced liquidation, asset liquidation, bankruptcy liquidation
Derivatives:
liquidate, liquidator, liquidating
Usage Tips:
Use "liquidation" when referring to the formal closure of a business or selling assets to settle debts.
Common Phrases:
fire sale, going into liquidation, liquidation sale
Etymology:
From Latin "liquidare," meaning to make clear or settle, via French "liquider."
Examples:
- 1. The store announced its liquidation sale next week.
- 2. The company faced liquidation after failing to repay its loans.
- 3. Creditors demanded the immediate liquidation of assets.
- 4. Liquidation proceedings can take months to complete.