Liquidation: meaning, definitions and examples

Use when discussing the process of selling a company's assets to pay off its debts.

• The company is undergoing liquidation to settle its outstanding debts
• Due to severe financial problems, they have decided to go into liquidation

Best used when speaking about shutting down a business or organization permanently, not necessarily due to financial trouble.

• The small cafe announced its closure after ten years of business
• Due to management issues, the company faced closure

Appropriate when referring to the legal status of an individual or entity that cannot repay the debts it owes to creditors.

• After years of financial struggle, the entrepreneur filed for bankruptcy
• The retailer went bankrupt after failing to secure new funding

Typically applied to formally ending a partnership, company, or organization, implying a legal process involved.

• The partners agreed on the dissolution of their firm
• Following the legal procedures, they announced the dissolution of the corporation

Liquidation is used in financial or business contexts when a company or asset is being brought to an end and its assets are distributed to claimants. This term often has a negative connotation as it implies that the entity is closing down.

• The company went into liquidation after it failed to secure additional funding.
• The liquidation of assets helped to pay off the corporation's debts.

Sale is used when items or services are being sold at a price. It is often used in retail, business, or real estate contexts.

• The holiday season is a great time for finding goods on sale.
• They put up their house for sale to move to a bigger city.

Disposal is used when something is being got rid of, typically as waste or something no longer needed. This word is often used in environmental, waste management, or legal contexts.

• Proper disposal of hazardous materials is crucial for environmental safety.
• She was responsible for the disposal of the outdated office equipment.

Conversion is used when something is being changed from one form to another. It can be used in various contexts, including financial, technical, or general everyday changes.

• The conversion of the old warehouse into modern apartments took several months.
• Bitcoin conversion rates have been fluctuating wildly.