Failure of a firm to meet its current obligations, when its liabilities exceed its assets is:

CS Executive · Financial and Strategic Management · PYQS · June 2023
Failure of a firm to meet its current obligations, when its liabilities exceed its assets is:
(A) Financial uncertainty
(B) Financial insolvency
(C) Financial distress
(D) Technical insolvency

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Financial Management

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