What context can I use each word in?
Learn when and how to use these words with these examples!
liquidation
Example
The company went into liquidation after failing to pay its debts. [liquidation: noun]
Example
The liquidation of the business resulted in the sale of all its assets. [liquidation: noun]
dissolution
Example
The dissolution of the partnership was due to irreconcilable differences. [dissolution: noun]
Example
The contract was terminated by mutual dissolution. [dissolution: noun]
Good things to know
Which word is more common?
Liquidation is more commonly used than dissolution in a business context, especially when referring to the closure of a company. However, dissolution is more versatile and can be used in various contexts, including legal, personal, and organizational.
What’s the difference in the tone of formality between liquidation and dissolution?
Liquidation is typically associated with a formal and legal tone, while dissolution can be used in both formal and informal contexts.
