Examlex
A firm is technically insolvent when:
External Funding
Capital that comes from outside of a company, including loans, lines of credit, or equity investments from external investors.
Financial Distress
A situation where a company is struggling to meet its financial obligations and is at risk of bankruptcy.
Receivables
Receivables are amounts owed to a business by its customers for goods or services delivered on credit, considered a current asset on the balance sheet.
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