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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.

liquidation

/ˌlɪkwɪˈdeɪʃən/ /ˌlɪkwɪˈdeɪʃən/

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.

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