Insolvency refers to:
A)Having illiquid assets.
B)Bankruptcy.
C)Having negative net assets as liabilities exceed assets.
D)The inability to pay debts when they fall due.

Question

Quizplus · Accepted Answer

Insolvency refers to having negative net assets and the inability to pay debts as they fall due.
Key Takeaway: Bankruptcy is a determination of insolvency. In July 2002, WorldCom filed for bankruptcy protection, in what was considered the largest corporate insolvency ever at the time.

Insolvency Refers To