What is the solvency of a business? to. Ability of the business to meet all its...

What is the solvency of a business?

to.

Ability of the business to meet all its obligations and dividends

b.

The financial stability of a company

c.

Ability to pay all shareholders in case of company bankruptcy.

d.

Business capacity to cover long-term debts with fixed assets

Expert Solution

Option D is correct

Business capacity to cover long-term debts with fixed assets

Solvency is the ability of a firm to meet its liabilities with assets it owns

jeff jeffy answered 2 years ago

Solvency ratios measure a company’s ability to meet its debt obligations. True or False Franchise rights...

Solvency ratios measure a company’s ability to meet its debt obligations. True or False Franchise rights are considered to be an identifiable intangible asset and must be amortized. True or False Companies that have property, plant, and equipment that increase in market value should recognize a gain on the income statement in the period the increase in value occurs. True or False All else being equal, a higher financial leverage will increase a company’s debt rating and decrease the interest...

In order to determine the ability of a project to meet its debt obligations, it is...

In order to determine the ability of a project to meet its debt obligations, it is important to forecast the project cash flows. Explain why it is important to carry out a cash flow analysis in project finance and the five factors that need to be considered when calculating cash flows

In order to determine the ability of a project to meet its’ debt obligations it is...

In order to determine the ability of a project to meet its’ debt obligations it is important to forecast the project cash flows. Explain why it is important to carry out a cash flow analysis in project finance and the five factors that need to be considered when calculating cash flows.

24. A business claims that no more than 1.2% of all its products do not meet...

24. A business claims that no more than 1.2% of all its products do not meet the minimum government standards. A survey of 450 products revealed that 10 did not meet the standards. If the level of significance is 0.02, what should be the decision in the test? A. Reject the null hypothesis, and agree that more than 1.2% of products fail to meet government standards. B. There is insufficient evidence to reject the null hypothesis. C. Do not reject...

Which of the following terms best describes a government's ongoing ability and willingness to meet its...

Which of the following terms best describes a government's ongoing ability and willingness to meet its financial obligations and service commitments as they become due? Question 19 : A) Financial condition. B) Financial position. C) Economic condition. D) Fiscal capacity.

PIK Manufacturing rewards its plant managers for their ability to meet budgeted quality cost reductions. The...

PIK Manufacturing rewards its plant managers for their ability to meet budgeted quality cost reductions. The bonus is increased if the productivity goal is met or exceeded. The productivity goal is computed by multiplying the units produced by the prevailing market price and dividing this measure of output by the total cost of the inputs used. Additionally, if the plant as a whole meets the budgeted targets, the production supervisors and workers receive salary and wage increases. Jim Smith, the...

Which ratio measures the corporation's ability to meet its financial obligations? a. leverage ratios. b. liquidity...

Which ratio measures the corporation's ability to meet its financial obligations? a. leverage ratios. b. liquidity ratios. c. activity ratios. d. asset management ratios. Which ratio measures the effectiveness of the corporation's use of resources? a. leverage ratios. b. liquidity ratios. c. activity ratios. d. asset management ratios. Please provide the correct answer if knowledgable in this area and do not copy and paste the answers from previous responses. Do not attempt this question if you are not familiar with...

Prepare two written financial goals for a business and show how the goals meet all of...

Prepare two written financial goals for a business and show how the goals meet all of the characteristics of effective goals.

what are solvency ratios?

Comment on the following statements. Capital structure ratio measures the ability of the company to meet...

Comment on the following statements. Capital structure ratio measures the ability of the company to meet its annual interests. Cash ratio should not exceed one. The higher the EPS the higher the pay-out ratio. The higher the liquidity ratio, the riskier the company is. Quick ratio is more conservative than cash ratio in measuring the company’s liquidity. There a negative relationship between the DSO and Inventory turnover. The longer the average selling period the better the company position in managing...

Question