Liquidated Meaning: Definition, Examples, and Translations

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.

Main points about word origin

• 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.

The term 'liquidate' originates from the Latin word 'liquidare', which means 'to make liquid'. The use of the word in a financial sense began in the late 19th century, reflecting the transformation of assets into liquid cash. In business terminology, it became associated with the process of selling off assets to clear debts, particularly in insolvency situations. Over time, the concept of liquidation has broadened to encompass various contexts, including corporate restructuring and personal finance, emphasizing the movement from tangible assets to cash flow.

Ranked #11,836, this word falls into high-advanced vocabulary. It appears less frequently but is valuable for expressing precise meanings in specific contexts.

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