The correct answer is: B. Liquidity.
Liquidity is the ability to convert assets into cash quickly and without loss of value. It is a measure of a company’s ability to meet its short-term obligations. A company with high liquidity is able to easily convert its assets into cash, while a company with low liquidity may have difficulty meeting its short-term obligations.
Solvency is the ability to meet long-term financial obligations. A company is considered solvent if its assets exceed its liabilities. A company that is insolvent is unable to meet its long-term financial obligations.
Leverage is the use of debt to finance assets. A company with high leverage is using a lot of debt to finance its assets. This can be a risky strategy, as it can lead to financial problems if the company is unable to make its debt payments.
Insolvency is the inability to meet financial obligations. A company that is insolvent is bankrupt.