Solvency
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Solvency is the ability of a company to meet its long-term debts and financial obligations. Solvency is essential to staying in business as it demonstrates a company’s ability to continue operations into the foreseeable future.
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The possession of assets in excess of liabilities; ability to pay ones debts.
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The state of having enough funds or liquid assets to pay all of ones debts; the state of being solvent.
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