Liquidating: meaning, definitions and examples
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liquidating
[ ˈlɪkwɪdeɪtɪŋ ]
business finance
Liquidating refers to the process of converting assets into cash. This usually occurs during bankruptcy proceedings or when a business is shutting down. It involves selling off inventory or other assets to pay creditors and settle liabilities. The goal is to clear all financial obligations before closing the business. Liquidation can be voluntary or involuntary, depending on the circumstances surrounding the company.
Synonyms
converting, dissolving, selling off
Examples of usage
- The company is liquidating its assets to pay off debts.
- They were liquidating their inventory at discounted prices.
- The court ordered the liquidation of the bankrupt firm.
Translations
Translations of the word "liquidating" in other languages:
🇵🇹 liquidação
🇮🇳 तरलता
🇩🇪 Liquidation
🇮🇩 likuidasi
🇺🇦 ліквідація
🇵🇱 likwidacja
🇯🇵 清算
🇫🇷 liquidation
🇪🇸 liquidación
🇹🇷 tasfiye
🇰🇷 청산
🇸🇦 تصفية
🇨🇿 likvidace
🇸🇰 likvidácia
🇨🇳 清算
🇸🇮 likvidacija
🇮🇸 úrræði
🇰🇿 лиquidation
🇬🇪 ლიკვიდაცია
🇦🇿 likvidasiya
🇲🇽 liquidación
Etymology
The term 'liquidate' derives from the Latin word 'liquidatus', the past participle of 'liquidare', which means to make liquid. The evolution of its meaning has turned towards economic contexts, particularly in the realm of finance and business. In older texts, it was often used in broader contexts related to making something liquid or flowing, reflecting the original Latin emphasis. The financial sense emerged during the late 19th century as the industrial revolution caused increased complexities in business operations, leading to the need for structured processes to settle debts and allocate resources effectively. Liquidation became a significant part of corporate law as businesses faced failures and legal frameworks for bankruptcy were established. Today, the term is most commonly associated with the sale of assets to cover liabilities, and it highlights a definitive closing chapter in the lifecycle of a business.