The term liquidation refers to the process of selling off or disposing of assets in order to raise cash. This can be done through a variety of methods, including selling property, inventory, or other assets that are owned by an individual or company. The goal is typically to convert these assets into cash so that they can be used to pay off debts and liabilities. Liquidation can also refer to the process of winding down a business or organization, in which case it involves selling off all remaining assets and using the proceeds to settle outstanding obligations before officially closing operations.