Financial stability refers to the ability of an entity to:
A) pay its rent.
B) earn a high rate of profit.
C) meet its long-term obligations.
D) pay its current obligations on time.

Question

Quizplus · Accepted Answer

Financial stability is primarily about the ability to meet long-term obligations, ensuring that an entity can sustain its operations over time without financial distress.

Financial Stability Refers to the Ability of an Entity To