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Liquidate Meaning: Definition and Examples

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liquidate

[ˈlΙͺkwΙͺdeΙͺt ]

Definitions

Context #1 | Verb

financial

To wind up the affairs of a company by realizing assets and paying debts.

Synonyms

close down, dissolve, shut down.

Which Synonym Should You Choose?

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Word Description / Examples
liquidate

Used primarily in financial and business contexts to indicate selling off assets to pay off debts. Often in reference to companies in severe financial distress.

  • The company had to liquidate its assets to repay creditors.
  • After years of losses, the business decided to liquidate.
dissolve

Used in formal or legal contexts, especially when referring to ending a partnership, organization, or group. This word implies a complete and official termination.

  • The board decided to dissolve the organization due to a lack of funding.
  • They agreed to dissolve the partnership peacefully.
close down

Commonly used in everyday language to indicate that a business or establishment is discontinuing operations. Suitable for both formal and informal contexts.

  • The local bakery decided to close down due to high rent costs.
  • They had to close down the shop after 50 years of service.
shut down

Primarily used informally to describe stopping operations or closing a business. Often implies a more sudden or urgent cessation compared to 'close down'.

  • The factory had to shut down immediately due to safety violations.
  • They will shut down the office next month.

Examples of usage

  • Creditors liquidated the company after it declared bankruptcy.
  • The business was forced to liquidate its assets to settle its debts.
Context #2 | Verb

eliminate

To eliminate, typically by violent means.

Synonyms

dispatch, eliminate, exterminate.

Which Synonym Should You Choose?

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Word Description / Examples
liquidate

This term is often used in a business or financial context to mean closing down a business and distributing its assets. It may also imply to get rid of something or someone, usually in a formal or legal manner.

  • They decided to liquidate the company and distribute its assets among the shareholders.
  • The spy was ordered to liquidate all evidence of his activities.
exterminate

This word is extremely strong and is usually used in the context of completely destroying or killing, especially in reference to pests or groups of people. It carries a very negative connotation.

  • Pest control will come to exterminate the rats from the building.
  • The dictator vowed to exterminate all opposition.
dispatch

This word is usually used to describe sending someone or something to a specific place or on a specific mission. It can also mean to deal with a task or problem efficiently. In some contexts, it can mean to kill.

  • The courier was dispatched at noon and should arrive by evening.
  • She was dispatched to handle customer complaints.
eliminate

This term is used to describe the action of completely removing or getting rid of something. It can apply to both physical and abstract contexts. When referring to people, it often has a negative connotation.

  • We need to eliminate all bugs from the system before the launch.
  • The competition was fierce, but he managed to eliminate all his rivals.

Examples of usage

  • The dictator ordered to liquidate all political opponents.
  • The spy agency was tasked to liquidate the terrorist cell.

Interesting Facts

Business

  • In finance, businesses may liquidate their assets during bankruptcy to pay off debts.
  • Liquidation can occur through voluntary actions by a business or through court mandates in insolvency cases.
  • The process can involve selling off inventory, real estate, and equipment to settle obligations.

Cultural Significance

  • In popular culture, the term often conveys a sense of urgency, as seen in clearance sales where items are β€˜liquidated’ to clear inventory.
  • Metaphorically, liquidation can represent a fresh start or a necessary end, often depicted in literature and film.

Legal

  • Liquidation can involve various legal processes, ensuring that creditors are paid in accordance with the law.
  • The process often requires careful documentation and valuation of assets.

Psychology

  • The decision to liquidate assets can often be an emotional one, linked to feelings of loss or guilt about failing businesses.
  • Understanding the psychological impact of liquidation can help business owners navigate the emotional landscape of making tough financial decisions.

Finance

  • Liquidation often results in a final settlement of accounts, closing down business affairs.
  • Investors may see liquidity as a measure of the ease with which investments can be converted to cash without affecting the asset's price.

Origin of 'liquidate'

Main points about word origin

  • The word comes from the Latin 'liquidare', meaning 'to make liquid', which reflects the process of converting assets to cash.
  • Initially used in legal contexts, it has evolved to describe selling off assets in business settings.

The word 'liquidate' comes from the Latin word 'liquidare', which means 'to melt'. In the financial context, it originally referred to converting assets into cash. Over time, the meaning expanded to include the elimination or termination of something, often with finality.

See also: liquefiable, liquefy, liquidation, liquidator, liquidity, liquidized, liquidizer, liquids.

Word Frequency Rank

With rank #16,980, this word belongs to specialized vocabulary. While not common in everyday speech, it enriches your ability to express complex ideas.