What will be the position of the owener of the company?If
the company liablites are more than company assets .
a. solvent
b. insolvent
c. profitable
d. liquidity
Answers were Sorted based on User's Feedback
Answer / phani
insolvent
not in a position to pay back its liabilities as assets
are short of liabilities .
Is This Answer Correct ? | 20 Yes | 0 No |
Answer / sowmya.k
insolvent. as his assets r less, if ever he goes for
liqidation he cant pay of his liabilites. so he is
insolvent.
Is This Answer Correct ? | 6 Yes | 0 No |
Answer / manoharnsr
Since the question is about the insolvancy of the company
it should not impact the solvancy of its owners. However,
in the case of a sole proprietor or a partnership firm the
status of teh organisation and the owners are the same but
in case of companies the owners (equity holders) are not
affected. The liability of the owners is limited to the
extent of their in the company. in certaiin cases directors
can be made directly resposible and liable but that is not
relevant to this question.
Those guys who chose one of the options in the question, i
guess , should also explain why they think so.
Is This Answer Correct ? | 4 Yes | 0 No |
Answer / khushboo bansal
The question can be answered based on the liability of the
company.if the company has limited liability thn the owner
is not liable or responsible and therefore he is solvent.
but,in case the companies liability is unlimited the owner
will b liable to pay back all the liabilities n will end up
being insolvent.
the company can neither be in a profitable position as
their liabilities are more than the assets nor will it be
in a liquidity position as they are running short of cash.
Is This Answer Correct ? | 3 Yes | 0 No |
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