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Updated. February 20, 2024 3:01:19

Meaning of Liquidation in English

Liquidation - Liquidation meaning - what is Liquidation

Liquidation Definition and Meaning – The meaning of Liquidation refers to the process of converting assets into cash to settle debts or obligations. It typically occurs when a company or business is unable to meet its financial obligations and is forced to sell off its assets to pay off creditors. Liquidation can be voluntary, where the company chooses to dissolve and sell its assets, or involuntary, where a court orders the process due to insolvency.

Origins

Origins and Terms of Liquidation: The term “liquidation” has its origins in the Latin word “liquidare,” which means “to melt” or “to dissolve.” In the financial context, liquidation involves dissolving a company by distributing its assets among creditors and shareholders.

Examples

Examples of Liquidation:

  1. Company Liquidation: When a business is facing bankruptcy or is unable to pay off its debts, it may enter into liquidation. The company’s assets, such as real estate, equipment, and inventory, are sold off, and the proceeds are used to pay off creditors.
  2. Personal Bankruptcy: Individuals facing severe financial distress may go through a personal liquidation process by selling off their assets to satisfy their debts.
  3. Investment Fund Liquidation: Investment funds, such as mutual funds or hedge funds, may undergo liquidation if they perform poorly, leading investors to withdraw their money. The fund’s assets are then sold, and the remaining cash is distributed among investors.

Related Terms

Related Terms of Liquidation:

  • Bankruptcy: A legal process where an individual or organization declares inability to pay debts, and their financial affairs are managed under court supervision.
  • Insolvency: When an individual or entity’s liabilities exceed its assets, making it unable to meet financial obligations.

Thesaurus

Synonyms and Antonyms of Liquidation:

Synonyms:

  • Dissolution.
  • winding-up.
  • closure.
  • settlement.
  • clearance.

Antonyms:

  • Expansion.
  • growth.
  • development.

Translations

Translations of Liquidation:

  • English: Liquidation
  • Hindi: निचोड़ (Nichod)
  • Urdu: تصفیہ (Tasfiyah)
  • Tamil: செயலற்றல் (Ceyalaṟṟal)
  • Marathi: लिक्विडेशन (Likviḍēśana)

Please note that translations may have slight variations based on context and regional language differences.

What is Liquidation?

Definition of Liquidation from The Fendi Haris Dictionary © Fendiharis.com – August 04, 2023 23:06:01