alleryStart learning →A solvent company is described as one that will likely:
AMove its head office
BStay in business
CMerge with a rival
DChange its auditor
Answer & Solution
Correct answer: B. Stay in business
1. Solvency is about survival over time.
2. Solvency implies a company can meet its long-term obligations.
3. Such a company will likely stay in business.
4. That is stated as being in the future.
_Source: OpenStax Principles of Finance (CC BY 4.0), Ch 6 'Measures of Financial Health'_
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