- 1 Marks
BCL – L1 – SA – Q13 – Legal Implications of Companies in Crisis
Question
What is insolvency?
A Profitability of a company
B Inability to pay debts as they become due
C Financial success
D High market share
Answer
B
Explanation:
Insolvency occurs when a company is unable to pay its debts as they become due. It is not related to profitability (A), financial success (C), or market share (D). Option B is correct.
- Tags: Corporate law, Debt Payment, Insolvency
- Level: Level 1
- Uploader: Samuel Duah