- 1 Marks
Question
A company that is unable to pay its debts as and when due is said to be
A. Bankrupt
B. Bad
C. Illiquid
D. Insolvent
E. Undercapitalised
Answer
D. Insolvent
Explanation:
A company is considered insolvent when it cannot meet its financial obligations as they become due. This condition may lead to bankruptcy if the company is unable to resolve its debts.
- Tags: Company Law, Financial State, Multiple Choice, Tags: Insolvency
- Level: Level 1
- Topic: Company Law
- Series: NOV 2015
- Uploader: Dotse