Dispersion of one liquid in another liquid, occurs when a liquid in insoluble. An emulsion can be referred to as a colloid that is produced from two liquids that are not exactly intermixable. Moreover, one liquid will possess a dispersion of the other liquid during the emulsion process. Some real life examples of this process are in products such as butter, mayonnaise, and egg yolk. Emulsification, which is also discussed in our terminology section, is the method that creates emulsion through mixing liquids.