________ describes a legal state whereby a firm cannot pay its creditors

Question

Quizplus · Accepted Answer

Bankruptcy is the legal state whereby a firm is unable to pay its creditors. Capital distress refers to a company's financial state where it is unable to meet its financial obligations, but it does not necessarily mean it is in a state of bankruptcy. Liquification is not a relevant term in this context, and capital structure refers to a company's composition of debt and equity financing.

________ Describes a Legal State Whereby a Firm Cannot Pay