Insolvency
What Insolvency means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Insolvency
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Reference: Pearson Edexcel
Occurs when a business cannot pay its debts as they fall due, directly threatening its survival.
A lack of cash to pay immediate debts, which can cause a profitable business to fail.
Topics that use Insolvency
- Business survival and cash flow (Pearson Edexcel A-Level)
Related terms
- Business survival
- Cash flow
- Cash-flow forecast
- Credit requirements
- Liquidity
- Profit
- Risk management
- Liquidation
Using Insolvency in the exam
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