liquidation

USAGE SUMMARY

The word 'liquidation' is correct and can be used in written English.
It is typically used to refer to the process of legally settling the affairs of a business, or the selling off of a company's assets in order to pay off creditors. For example: "The company was forced to liquidate its assets in order to pay off its creditors."

✓ Grammatically correct

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

One study found that mutual funds holding illiquid assets were more likely to suffer investor redemptions because of bad performance than were funds holding liquid assets.From runs to fire sales"Collective attempts at liquidation to meet withdrawal requests would lead to ruinous fire sales," write Stephen Cecchetti of Brandeis University and Kim Schoenholtz of New York University.

The Economist

Although deputy mayor Jaroslaw Jozwiak says a final decision has not yet been made and this does not represent a liquidation of the museum and its collections, there is no doubt that the loss of this recognised small museum will mean less access to its 20,000 drawings and research facilities.

The Guardian - Arts

King had also claimed it is "inevitable" that Rangers will go into liquidation.

The Guardian - Sport

And there were anxious murmurs from the sector earlier this month when Eco-Actif – a community interest company spin-out and sub-contractor providing support for the long-term jobless in south- east London – went into voluntary liquidation, claiming its banks considered the Work Programme too financially risky.

The Guardian

Related: Bournemouth 3-0 Bolton Wanderers | Championship match report Mostyn, who wrote a cheque for £100,000 to save the club from liquidation in 2008, tweeted: "OMG just got home 0250 What has just happened so proud of everyone @afcbournemouth on promotion to the @premierleague £DreamsDoComeTrue".

The Guardian - Sport

The remarks make reference to Sevco Scotland, the name of the company who purchased the business and assets of Rangers in the summer, after the club was consigned to liquidation.

The Guardian - Sport

The Rangers public relations stance is that the club remain the same as ever, history intact, despite the fresh corporate identity created by liquidation.

The Guardian - Sport

The First Division club were placed in provisional liquidation this week with debts of £750,000 but will hold an emergency general meeting on Monday, when shareholders will be asked to allow the constitution to be changed to clear the way for a takeover bid.

The Guardian - Sport

The Rangers support stand accused of gullibility in not realising that their club was being so badly mismanaged, but even they are entitled to highlight how badly the subsequent situation – as the "old" club succumbed to liquidation – has been handled.

The Guardian - Sport

Jeff Mostyn, Bournemouth's chairman, had to inject his own cash to ensure that they did not enter liquidation.

The Guardian - Sport

According to a recent local report on living standards, Zimbabwe social indicators have regressed to 1960 levels, while company closures continue unabated amid estimates that nearly 40 companies are currently undergoing either judicial management or liquidation.

The Guardian - Opinion

Expert writing Tips

Best practice

Use "liquidation" to describe a formal and often legally mandated process, not just a general sale of assets. The term implies a finality in resolving debts and closing down operations.

Common error

Avoid using "liquidation" interchangeably with bankruptcy or restructuring. Liquidation is a specific outcome where assets are sold; bankruptcy is a legal status, and restructuring aims to reorganize debt and operations.

Linguistic Context

The noun "liquidation" primarily functions as a descriptor of an action or process, specifically denoting the act of converting assets into cash. Ludwig AI indicates its correct usage in formal contexts.

Expression frequency: Very common

Frequent in

News & Media

43%

Formal & Business

30%

Science

27%

Less common in

Encyclopedias

0%

Wiki

0%

Reference

0%

Ludwig's WRAP-UP

In summary, "liquidation" is a grammatically correct and frequently used noun that describes the process of converting assets into cash, often to settle debts or conclude business operations. As Ludwig AI explains, it is common in formal business and legal contexts, as well as news reporting. The term's high source quality and usage consistency make it a reliable choice when discussing financial matters. While alternatives like "winding up" or "asset disposal" exist, "liquidation" provides a specific and formal description of this process.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

asset liquidation

Focuses specifically on converting assets into cash, which is a key part of the liquidation process.

winding up

Focuses on the process of bringing a business to an end, similar to liquidation but can imply a more orderly process.

asset disposal

Refers specifically to the selling of assets, which is a component of liquidation but not the entire process.

business termination

Emphasizes the ending of a business operation, which is the result of liquidation.

company dissolution

Highlights the formal ending of a company's legal existence, closely related to the legal aspect of liquidation.

bankruptcy proceedings

Indicates the legal procedures often involved in liquidation when a company is insolvent.

closure of business

Highlights the final stage of ceasing business operations, which can be a consequence of liquidation.

monetization of assets

Emphasizes the conversion of assets into monetary form, aligning with the financial goals of liquidation.

estate settlement

Refers to settling the affairs of a deceased person's estate, which involves liquidation of assets if necessary.

receivership

Involves a receiver managing a company's assets, often as a step toward liquidation or restructuring.

FAQs

How is "liquidation" used in business contexts?

In business, "liquidation" refers to the process of converting assets into cash, usually to pay off creditors when a company is insolvent. It's often the final step in bankruptcy proceedings.

What's the difference between "liquidation" and bankruptcy?

"Liquidation" is a process of selling assets, while bankruptcy is a legal status. Liquidation often occurs during bankruptcy, but they aren't the same thing. Bankruptcy provides legal protection from creditors while a company attempts to reorganize or liquidate.

What are some alternatives to using the word "liquidation"?

Depending on the context, you might use alternatives like "winding up", "asset disposal", or "business termination" to describe similar situations.

When is "liquidation" the most appropriate term to use?

"Liquidation" is most appropriate when describing the formal, legal process of converting assets to cash to pay off debts, especially when a business is ceasing operations permanently.