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Meaning of insolvency

 

 

 

Insolvency

 

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Business glossary

 

Meaning of term insolvency :

 

Insolvency is where a company does not have sufficient assets to meet its liabilities. A firms 'capital' is equal to its total assets minus its total liabilities. Where this figure is negative, the firm is insolvent.

 

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Insolvency

 

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