When a venture's cash on hand is insufficient to pay currently due liabilities, this is referred to as:

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Financial distress occurs when a company doesn't have enough cash to cover its short-term liabilities. This is different from balance sheet insolvency, which occurs when a company's liabilities exceed its assets, and bankruptcy, which is a legal declaration that a company cannot pay its debts. Liquidation is the process of selling off a company's assets in order to pay its debts, and may occur as a result of bankruptcy or insolvency.

When a Venture's Cash on Hand Is Insufficient to Pay