Definition

The act of selling off a company's assets to pay debts or to close the business.

Example

The company went through liquidation to settle its debts after failing to make a profit.

Conversation

Have you heard about the company's liquidation process?

Yeah, I read they are selling off their assets to pay debts.

It’s sad to see how quickly businesses can go into liquidation.

I know, especially when they had such a good start.

Synonyms & Antonyms

Root Explanation

Liquidation → It is formed from "liquidus" (from Latin, meaning fluid or flowing) and "-ation" (a suffix used to form nouns indicating an action or process). The word "liquidation" refers to the process of converting assets into cash or liquid form, often in the context of settling debts or closing a business.

Memory Tip

Think of 'liquid' as something that flows easily, and remember that 'liquidation' is the process of turning assets into cash, which is a liquid form.

Visually Confused Words