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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. 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.