Solvency is the ability of a business to
(A) maximise its profits - HSC - SSCE Business Studies - Question 4 - 2016 - Paper 1
Question 4
Solvency is the ability of a business to
(A) maximise its profits.
(B) increase its market share.
(C) meet its long-term financial commitments.
(D) meet its shor... show full transcript
Worked Solution & Example Answer:Solvency is the ability of a business to
(A) maximise its profits - HSC - SSCE Business Studies - Question 4 - 2016 - Paper 1
Step 1
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Answer
Solvency refers specifically to a business's ability to meet its long-term financial commitments. Therefore, the correct answer is (C) meet its long-term financial commitments.
