Solvency refers to a company's ability to

• A. Liquidity
• B. Market Share
• C. Solvency
• D. Customer Satisfaction

Answer: (C)

Solvency is about a company's long-term financial health and its ability to meet long-term obligations and continue operating over time. It focuses on whether assets are sufficient to cover liabilities in the long run and whether cash flows can service debt. Liquidity, by contrast, concerns short-term cash needs and the ability to meet near-term obligations. Market share and customer satisfaction measure performance and competitiveness, not the ability to pay debts. So the best answer matches the idea of sustaining long-term obligations and overall financial viability.