
Solvency
Business Relevance
Used often in financial or business contexts to discuss a company's health.

The board reviewed the quarterly report to assess the company's solvency.
Positive Connotation
Implies a positive financial status, suggesting reliability and trust.

Given the company's solvency, investors feel confident in its future.
Legal Context
May be used in legal scenarios, especially in bankruptcy proceedings.

The court will evaluate the solvency of the business before approving the restructuring plan.
Compare with
Liquidity
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