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    Question

    __________ is a state in which a company’s liabilities

    are more than its assets so that is unable to repay its debts
    A Bankruptcy Correct Answer Incorrect Answer
    B Insolvency Correct Answer Incorrect Answer
    C Liquidation Correct Answer Incorrect Answer
    D Either of the above Correct Answer Incorrect Answer
    E Both (a) & (b) Correct Answer Incorrect Answer

    Solution

    Insolvency is a state in which a company’s liabilities are more than its assets so that is unable to repay its debts. Bankruptcy is when a person is legally declared by a competent court as incapable of paying its debts/dues.

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