formal 10K+

Liquidation

UK //ˌlɪkwɪˈdeɪʃən// US //ˌlɪkwɪˈdeɪʃən// Pronunciation

Definition

The process of closing a business by selling its assets to pay creditors.

Listen to definition

In simple words: The act of selling all assets to pay debts.

Examples

• The company's liquidation was announced after several years of financial losses.
• During liquidation, all remaining inventory is sold at drastically reduced prices.
• Liquidation of the firm took months as all assets needed to be evaluated.
• Investors were notified about the liquidation process through official channels.
• The liquidation of assets was essential to settle outstanding debts with creditors.

Usage notes

Used in business contexts, particularly for companies going out of business. Avoid in casual conversation.

Grammar pattern

liquidation + of + object

Memory hint

Think of a company 'liquidating' its assets like pouring liquid out of a container.

Collocations

• bankruptcy liquidation
• business liquidation
• voluntary liquidation
• liquidation process
• liquidation sale

Synonyms

• dissolution
• closure
• bankruptcy
• sell-off
• disbandment

Common mistakes

• Confused with 'liquid' versus 'liquidation'.
• Using in a non-business context when it is business-specific.