Question

In: Finance

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

Solutions

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


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