Factors which reflect the ability of a business to pay its debts and earn a reasonable amount of income are referred to as solvency and profitability.

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Solvency and profitability are two important factors that reflect a business's financial health. Solvency refers to the ability of a business to pay its debts, while profitability refers to the ability of a business to earn a reasonable amount of income. Both factors are essential for a business to stay afloat and achieve long-term success.

Factors Which Reflect the Ability of a Business to Pay