Liquidation is the process of resolving a company's assets into cash.

Is the word resolve used correctly here?


To "resolve" means "to make solvent again"; to "be solvent" is to be provided with cash (or at least buying power).

Since purchasing turns liquid assets into hard assets, and conversely liquidation turns those hard assets back into liquid assets, "resolve" is a applicable and defensible word, even if a bit unusual in that context.


I don't know if there's anything particularly wrong in using "resolve" in that sentence, but the more usual term used is "convert". Also, liquidation involves more than converting assets into cash, so a better statement might be

Liquidation is the process of converting a company's assets into cash.

Note, however that while converting a company's assets to cash is one process involved in liquidation, there are other processes involved, too, for example, the termination of leases on equipment. If considering these other processes, one might use the term "resolve", as in

During liquidation, a companies contractual obligations are resolved.

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