Definition

A legal situation where a receiver is appointed to manage the assets and liabilities of a company that is unable to pay its debts.

Example

The company entered receivership after failing to meet its financial obligations.

Conversation

Did you hear about that company going into receivership?

Yeah, it's such a shame; they had a lot of potential.

I know, right? It's tough to see businesses fail like that.

Absolutely, especially when it affects so many employees.

Synonyms & Antonyms

Root Explanation

Receivership is formed from "receive" (from Old French *receivre*, meaning to take back) and "-ship" (meaning the state or condition of). The term refers to the state of being in the care of a receiver, typically in a legal context where an entity is managed by a receiver due to financial difficulties.

Memory Tip

Think of 'receiving' something back, which helps you remember that 'receivership' is the state of being managed by someone who takes control.

Visually Confused Words