Definition of insolvency

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TeachMeFinance.com - explain insolvency



insolvency -- the inability to pay one's debts as they come due. Even though the total assets of an organization may exceed its total liabilities, the entity is insolvent if the assets cannot be converted into cash to meet the current obligations.



About the author

Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


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