Liquidate definitions
| Word backwards | etadiuqil |
|---|---|
| Part of speech | The word "liquidate" is a verb. |
| Syllabic division | liq-uid-ate |
| Plural | The plural of liquidate is liquidates. |
| Total letters | 9 |
| Vogais (4) | i,u,a,e |
| Consonants (4) | l,q,d,t |
When a company decides to liquidate, it means that it is closing business operations and selling off its assets to pay off debts or distribute funds to shareholders. This process typically involves selling inventory, equipment, real estate, and any other assets the company may possess.
One of the most common reasons for a company to liquidate is because it is insolvent, meaning it cannot pay its debts as they become due. In this situation, liquidation is often seen as the best way to wind down the company in an orderly fashion and ensure that creditors are paid as much as possible.
Types of Liquidation
There are two main types of liquidation: voluntary and involuntary. Voluntary liquidation occurs when the company's shareholders vote to liquidate the business, while involuntary liquidation is typically initiated by creditors who have not been paid.
Voluntary Liquidation
In a voluntary liquidation, the company's directors will appoint a liquidator to oversee the process. The liquidator's main role is to sell off the company's assets and distribute the proceeds to creditors in a specific order of priority as set out by law.
Involuntary Liquidation
In an involuntary liquidation, a court will appoint a liquidator to oversee the process. The liquidator will sell off the company's assets and distribute the proceeds to creditors according to the same order of priority as in a voluntary liquidation.
Overall, the liquidation process can be complex and time-consuming, but it is often necessary when a company is no longer viable. By liquidating, a company can close its doors in an orderly fashion and ensure that creditors are treated fairly.
Liquidate Examples
- The company decided to liquidate its assets to pay off its debts.
- He had to liquidate his stock portfolio in order to have cash for the emergency.
- The bankrupt business was forced to liquidate its inventory at a steep discount.
- The court ordered the company to liquidate its holdings and dissolve the corporation.
- The store had to liquidate its surplus merchandise during the clearance sale.
- They had to liquidate their savings to cover the unexpected medical expenses.
- The decision was made to liquidate the failing division of the company.
- The investor chose to liquidate their assets and reinvest in a more promising opportunity.
- The business owner had to liquidate their retirement account to keep the company afloat.
- The estate had to be liquidated in order to distribute the assets to the heirs.