A company is said to be insolvent when

Assessment: WAEC SSCE - Commerce - 1999 (Objective) Subject: Commerce

Question 1 Report

A company is said to be insolvent when
Answer Details
A company is said to be insolvent when its total liabilities exceed its total assets. This means that the company is not able to meet its financial obligations and may not be able to pay its debts as they become due. This is a serious financial situation that may lead to bankruptcy or liquidation of the company. It is important for companies to monitor their financial position and take necessary steps to avoid insolvency, such as reducing costs, increasing revenue, or obtaining additional financing.
Read lesson note on Legal Aspects Of Business (JAMB)
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