Definitions
- Referring to the process of selling off assets or investments for ethical, financial, or strategic reasons. - Describing the act of removing oneself from a particular business or industry for ethical or moral reasons. - Talking about the process of reducing or eliminating holdings in a particular company or industry.
- Referring to the process of selling off all assets and closing down a business or company. - Describing the process of converting assets into cash to pay off debts or obligations. - Talking about the process of winding down a business or investment portfolio.
List of Similarities
- 1Both involve the sale of assets or investments.
- 2Both can be used to achieve financial goals.
- 3Both can be used to address ethical concerns.
- 4Both can be used to adjust a company's or individual's portfolio.
- 5Both can result in a change in ownership or control.
What is the difference?
- 1Purpose: Divestment is often done for ethical or strategic reasons, while liquidation is usually done to pay off debts or close down a business.
- 2Scope: Liquidation involves selling off all assets, while divestment may involve selling off only certain assets or holdings.
- 3Timing: Liquidation is usually done when a business is in financial trouble, while divestment can be done at any time.
- 4Outcome: Liquidation results in the closure of a business or company, while divestment may result in a change in ownership or control.
- 5Flexibility: Divestment allows for more flexibility in adjusting a portfolio, while liquidation is a more drastic measure.
Remember this!
Divestment and liquidation are both terms used to describe the process of selling off assets or investments. However, the difference between the two is their purpose and scope. Divestment is often done for ethical or strategic reasons and may involve selling off only certain assets or holdings. On the other hand, liquidation is usually done to pay off debts or close down a business and involves selling off all assets.
