A company that is unable to pay its debts is
A. Fluid
B. Floating
C. Bankrupt
D. Insolvent
E. Distressed

D

Explanation:
The correct answer is D. Insolvent. Insolvency refers to a situation where a company is unable to pay its debts as they become due. It is a legal state in which the company’s liabilities exceed its assets, and it cannot meet its financial obligations. Insolvency may lead to bankruptcy if legal proceedings are initiated, but the two terms are distinct, with insolvency being a broader financial condition.