Liquidated: meaning, definitions and examples
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liquidated
[ˈlɪkwɪdeɪtɪd ]
Definition
financial context
Liquidated refers to the process of converting assets into cash, typically during a company's closure or financial restructuring. This often involves selling off inventory, equipment, and other assets to repay creditors and settle debts.
Synonyms
closed, dissolved, settled, terminated.
Examples of usage
- The company was liquidated due to bankruptcy.
- She liquidated her shares to invest in a new venture.
- The court ordered the business to be liquidated immediately.
Interesting Facts
Etymology
- The term comes from the Latin word 'liquidare', which means 'to make liquid' or 'to clear up'.
- In the business context, it started being used in the 19th century to describe converting assets to cash.
- This word is linked to the idea of turning something solid into a flowing form or cash.
Finance
- Liquidation can occur voluntarily, when owners choose to sell, or involuntarily, through bankruptcy when creditors take over.
- During liquidation, a company's debts are paid off using the cash generated from the sale of its assets.
- There are two types of liquidation: creditor's voluntary liquidation and members' voluntary liquidation, depending on who initiates the process.
Cultural References
- The idea of liquidation has been popularized in movies where businesses are shown selling off their assets in dramatic fashion.
- In literature, characters may face liquidation when their businesses fail, reflecting the harsh realities of economic challenges.
- The term is often used in political discussions to highlight economic failures or restructuring in various countries.
Legal Aspects
- In many jurisdictions, liquidation must be carried out according to strict legal processes to ensure fair treatment of creditors.
- Liquidators are appointed to oversee the process, ensuring that the company's assets are sold and debts settled legally.
- Different laws govern voluntary and involuntary liquidation, providing a framework for how assets can be managed and sold.
Historical Context
- The Great Depression in the 1930s saw many businesses being liquidated as a direct outcome of economic collapse.
- Liquidation has been a common theme in post-war economies, where reconstruction leads to the selling off of unproductive assets.
- In the tech boom of the 2000s, many startups faced liquidation after failing to turn a profit, highlighting the risks of venture capital.
Translations
Translations of the word "liquidated" in other languages:
🇵🇹 liquidado
🇮🇳 विलीन
🇩🇪 liquidiert
🇮🇩 dilunasi
🇺🇦 ліквідований
🇵🇱 likwidowany
🇯🇵 清算された
🇫🇷 liquidé
🇪🇸 liquidado
🇹🇷 tasfiye edilmiş
🇰🇷 청산된
🇸🇦 تم تصفيته
🇨🇿 likvidovaný
🇸🇰 liquidovaný
🇨🇳 清算
🇸🇮 likvidiran
🇮🇸 liquideraður
🇰🇿 жойылған
🇬🇪 ლიკვიდირებული
🇦🇿 likvidasiya edilmiş
🇲🇽 liquidado