The Distinction Between Bankruptcy and Insolvency Is

Multiple Choice

The distinction between bankruptcy and insolvency is:

A) unimportant, the terms mean essentially the same thing.
B) bankruptcy means a firm can't pay its bills, insolvency means its liabilities exceed its assets.
C) bankruptcy means a firm's liabilities exceed its assets, insolvency means it can't pay its bills.
D) bankruptcy is a court procedure, insolvency is a financial condition that may make bankruptcy appropriate.