Liquidity or Solvency: Which term sounds better to business owners?

  • Liquidity
  • Solvency
Please select one to answer and see the result

Answers

Liquidity - 2Solvency - 2
  • Anonymous . 3+ yrs. ago
If the company cannot convert money in order to pay off their debts, investors will be less likely to invest in that company due to the risk involved.
  • Anonymous . 3+ yrs. ago
If a company cannot pay for its immediate requirements like inventories and labor, the company will fail to operate.
  • Anonymous . 3+ yrs. ago
because it will sound profitable if they are able to easily convert short term assets into cash.
  • Anonymous . 3+ yrs. ago
A solvency issue at one point may cause a liquidity issue elsewhere in the process

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