Word
liquidation
Phoneticsliq·ui·da·tion, stress on the third syllable
US/ˌɫɪkwɪˈdeɪʃən/
UK/lˌɪkwɪdˈeɪʃən/
Countable & uncountable
Definition
n. the process of closing a business and selling everything it owns to pay back its debts. It happens when a company can no longer continue operating.
n. the process by which a company is dissolved and its assets are converted into cash to satisfy creditors. Often involves a court-appointed official to oversee the distribution of funds.
Examples
“The shop is holding a sale before its final liquidation.”
“After the board failed to secure a new loan, the company was forced into compulsory liquidation to pay its staff and suppliers.”
“The sudden liquidation of the tech startup sent shockwaves through the local economy, leaving hundreds of contractors without pay and several high-profile investors facing significant losses.”
Examples
simple
“The shop is holding a sale before its final liquidation.”
contextual
“After the board failed to secure a new loan, the company was forced into compulsory liquidation to pay its staff and suppliers.”
complex
“The sudden liquidation of the tech startup sent shockwaves through the local economy, leaving hundreds of contractors without pay and several high-profile investors facing significant losses.”
Usage
Uncountable when referring to the general legal process; countable when referring to a specific instance or case.
Real-World Examples
“The company behind Manchester Pride went into voluntary liquidation last year, owing more than £1m to suppliers and performers, including Nelly Furtado.” “About 2 in 3 people use Chapter 7, a form of financial liquidation .” Etymology
From liquidate + -ion.
Etymology adapted from Wiktionary, available under CC BY-SA 4.0.
Word family
VERB
NOUN
Domain
- Exam level
- CambridgeCambridgeCambridge English QualificationsThe exam suite from Cambridge University Press & Assessment, from A1 Movers up to C2 Proficiency. The benchmark names double as CEFR labels.C1 AdvancedIELTSIELTSInternational English Language Testing SystemThe 0–9 band test co-owned by the British Council, IDP, and Cambridge. Used for university entry, work, and migration.7.0–8.0TOEFL iBTTOEFL iBTTest of English as a Foreign Language, Internet-Based TestETS's academic English test, the standard route for US university admissions. Scored 0–120, with a 1–6 scale since 2026.1–6 scale: 5.0–5.595–113TOEICTOEICTest of English for International CommunicationETS's workplace English test, big in Japan and Korea. Listening & Reading scores 10–990 and tops out at C1.945–990
- Frequency
- Frequent
- Level
- C1 · Advanced
- Updated
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englishreference.com/q/liquidation