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    Question

    When an individual’s insolvency cannot be resolved it

    is known as _________________
    A Bankruptcy Correct Answer Incorrect Answer
    B Insolvency Correct Answer Incorrect Answer
    C Liquidation Correct Answer Incorrect Answer
    D Inability to pay debts Correct Answer Incorrect Answer
    E Both b & d Correct Answer Incorrect Answer

    Solution

    Bankruptcy means a legal declaration of insolvency of the individuals as well as the corporates who cannot repay their debts to creditors. However, if insolvency is untreated it results in bankruptcy for the individual’s and for corporates it is known as corporate insolvency/liquidation.

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