Liquidation is a noun with a few sharply different meanings. In business, it usually means closing a company and selling its assetsvaluable things owned by a person or organization to pay its debtsmoney that is owed to someone else. In other contexts, it can mean exterminationthe act of killing all members of a group or the killing of a rival, though those senses are much less common and far more specific.
Reviewed with OpenAI Decisions. Assessment: accurate. Checked: 2026-10-19. AI assessment; not a guarantee of accuracy.
Pronunciation
AI-generated pronunciation audio (OpenAI).
Accent: General American English
IPA: /lɪˌkwɪˈdeɪʃən/
Easy pronunciation: lik-wih-DAY-shən (approximate spelling).
Stress: Primary stress is on DAY; secondary stress is on the first syllable.
Use the business-closure meaning: the process of ending a company and selling its assets to pay debts.
Reviewed with OpenAI Decisions. Assessment: accurate. Checked: 2026-10-19. AI assessment; not a guarantee of accuracy.
Liquidation Meaning
the process of closing a business and selling its assets to pay what it owes
Part of speech: noun
Definition: termination of a business operation by using its assets to discharge its liabilities
Example: The company went into liquidation after years of mounting debt.
Synonyms for this meaning:
- settlement — Can overlap in the sense of paying debts, but it is not a full substitute for the business-closure meaning.
Reviewed with OpenAI Decisions. Assessment: accurate. Checked: 2026-10-19. AI assessment; not a guarantee of accuracy.
Other Meanings of Liquidation
Meaning 2
the act of wiping out or killing off completely
Part of speech: noun
Definition: the act of exterminating
Example: The report described the liquidation of the invasive species from the island.
Synonyms for this meaning:
- extermination — A direct match for this sense.
Meaning 3
the killing of a rival, especially in a hostile or criminal context
Part of speech: noun
Definition: the murder of a competitor
Example: The novel centers on the liquidation of a political rival.
Synonyms for this meaning:
- elimination — Can fit this sense in some contexts, but it is broader and less direct than a literal killing.
Reviewed with OpenAI Decisions. Assessment: uncertain — manual review needed. Checked: 2026-10-19. AI assessment; not a guarantee of accuracy.
Liquidation Synonyms
Similar Meaning
- settlement
the act of exterminating
- extermination
the murder of a competitor
- elimination
Reviewed with OpenAI Decisions. Assessment: uncertain — manual review needed. Checked: 2026-10-19. AI assessment; not a guarantee of accuracy.
Common Mistakes
- Do not use liquidation as a general synonym for selling something cheaply; that is a different word sense in everyday speech.
- Do not mix the business meaning with the violent senses. They are unrelated uses of the same word.
- Settlement is only a partial match because it usually means paying debts, not closing a company.
Reviewed with OpenAI Decisions. Assessment: uncertain — manual review needed. Checked: 2026-10-19. AI assessment; not a guarantee of accuracy.
Frequently Asked Questions
What does liquidation mean in business?
It means closing a business and selling its assets to pay its debts.
Is liquidation the same as bankruptcy?
Not exactly. Bankruptcy is a legal financial state or process, while liquidation is the sale of assets to pay creditors.
Can liquidation mean killing?
Yes, in some dictionary senses it can refer to extermination or the killing of a rival, but those uses are much less common than the business meaning.
Reviewed with OpenAI Decisions. Assessment: accurate. Checked: 2026-10-19. AI assessment; not a guarantee of accuracy.