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    Question

    What does insolvency

    mean?
    A When asset is more than liability Correct Answer Incorrect Answer
    B When lability is more than assets Correct Answer Incorrect Answer
    C When asset is less than liability Correct Answer Incorrect Answer
    D Either b or c Correct Answer Incorrect Answer
    E Either a or b or c Correct Answer Incorrect Answer

    Solution

    Insolvency is the financial state where the individual or the company is not able to pay back the debts to the creditors on time and does not have the financial capability of discharging the liability. Thus, it can be said to be the situation of financial/economic distress.

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