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

Please select one to answer and see the result

Answers

Liquidity - 2	Solvency - 2
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 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 A solvency issue at one point may cause a liquidity issue elsewhere in the process Anonymous . 3+ yrs. ago because it will sound profitable if they are able to easily convert short term assets into cash.

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Liquidity and solvency are two issues that any business may eventually have to face, particularly in the face read full comparison...