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TeachMeFinance.com - explain Liquidation liquidation -- Sale of the assets of a business to pay off debts. another definition... liquidation -- the process of terminating a business including selling assets to obtain cash and using the cash to discharge liabilities. another definition... Liquidation -- 1. The act or process of settling or making clear, fixed and determined. 2. The winding up and settlement of a debt. 3. The winding up of the financial affairs of a business. 4. (USA) The final computation or ascertainment of the duties accruing on an entry. historic definition... Liquidation -- Settling or winding up; in speculation, closing of transactions either compulsorily or voluntarily. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.