Difference between Divestiture and Liquidation

What is the difference between Divestiture and Liquidation?

Divestiture as a noun is the act of divesting, or something divested while Liquidation as a noun is the process of converting into cash (or into an asset with high liquidity).

Divestiture

Part of speech: noun

Definition: the act of divesting, or something divested the sale or liquidation of a subsidiary company, especially if forced by some governing authority

Liquidation

Part of speech: noun

Definition: The process of converting into cash (or into an asset with high liquidity).The selling of the assets of a business as part of the process of dissolving the business.

We hope you now know whether to use Divestiture or Liquidation in your sentence.

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