Which of the Following Two Statements Is Correct

question 4

Multiple Choice

Which of the following two statements is correct?
I.Illiquidity is the inability of a firm to raise funds on reasonable terms.
II.Insolvency is the inability of a firm to meet its financial obligations as they are due

• A)Both I and II are correct
• B)Both I and II and incorrect
• C)Statement I is incorrect and statement II is correct
• D)Statement I is correct and statement II is incorrect

---

Definitions:

Seller

An individual or entity that offers a product or service for sale to a buyer.

UCC

Uniform Commercial Code, a set of laws that govern commercial transactions in the United States.

Merchant Status

A legal designation for individuals or entities engaged in the sale of goods, which subjects them to specific regulatory statutes and obligations under the Uniform Commercial Code.

Neuroticism

A personality trait associated with a higher tendency towards anxiety, depression, self-doubt, and other negative feelings.