Martha's business accountant has suggested that because the business is unable to meet its financial obligations as they become due and has little prospect of having sufficient assets to meet those obligations in the future,her business is legally considered insolvent.

Question

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Insolvency is defined as the inability of a business or individual to meet their financial obligations as they become due, coupled with a lack of sufficient assets to cover these obligations. If Martha's business fits this description, it is legally considered insolvent.

Martha's Business Accountant Has Suggested That Because the Business Is