The process of closing down a business and selling off its assets, or converting assets to cash.
From Latin 'liquidus' meaning 'fluid' or 'flowing.' The financial meaning developed because converting solid assets (buildings, inventory) into cash was seen as making them 'flow' like liquid. Medieval merchants used 'liquid' to describe money because it moved easily, unlike fixed property that was 'solid' or stuck in place.
When a business goes into liquidation, they're literally making their assets 'flow' like water. Medieval traders thought of money as liquid because it moved from hand to hand, while land and buildings were 'solid' because they stayed put - a metaphor that stuck for centuries.
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