Lack of long-term solvency refers to:

Question

Quizplus · Accepted Answer

Lack of long-term solvency refers to the risk of a company not being able to meet its long-term obligations, such as paying off long-term debt or funding future growth. This is a measure of the company's ability to pay off its liabilities in the long run, relative to its available assets and cash flow. Therefore, option A, which refers to the risk of nonpayment relative to liabilities in the capital structure, is the best choice.

Lack of Long-Term Solvency Refers To