A company is technically insolvent when
A) earnings before interest payments are less than the interest payments.
B) it lacks the necessary liquidity to promptly pay its current debt obligations.
C) current ratio is less than 1.0.
D) cash outflows in a given period are greater than cash inflows.
B
Business
You might also like to view...
What annuity payout option provides for lifetime payments to the annuitant but guarantees a certain minimum term of payments (typically 5, 10, or 20 years), whether or not the annuitant is living?
A) Period certain B) Straight life income C) Life with period certain D) Installment refund option
Business
In which type of buying situation would a supplier most likely focus on maintaining product and service quality? Why?
What will be an ideal response?
Business