Solvency

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Solvency

Ability to meet obligations.

Solvency

The state of a company being able to service its debt and meet its other obligations, especially in the long-term. Solvency is a necessary condition for a business to operate. If a company is unable to meet its obligation, it is said to be insolvent and must undergo bankruptcy in order to either liquidate or restructure. See also: Insolvency risk, Accounting insolvency.
References in periodicals archive ?
In the mid-'80s, researchers at Battelle Northwest, Richland, Wash., discovered the use of micelles to improve solvent power, in much the way that soup helps to solubilize oils in water.
Furthermore, by relating the maximum in the scattered intensity to the corresponding temperature where it appears for three plastisol systems, it is possible to evaluate the relative solvent power of the plasticizers.
However, in this study since only PET with W of 2.1 dl/g was used for the dissolution studies, the differences in [T.sub.dis] can be attributed in the solvent power in breaking down the crystallites; the lower the dissolution temperature, the stronger the solvent power.
Marshall's excellent analysis of the problematizing of purgatory under Henry should, however, take fuller measure of the solvent powers of the historical and moral criticism developed by Christian humanism.