Contact: phone +48 22 581 38 60, email info@lacrosse.pl | Office hours: Monday – Friday, 8.30 am – 8 pm
  • English
  • Deutsch
  • Polski

Tip 65.  Insolvency.

Which option is correct?

A company becomes insolvent when it...

A. ...has stopped fufilling its financial obligations.

Wrong answer, try again!

B. ...is incapable of fulfilment of its due obligations.

Wrong answer, try again!

C. ...is unable to pay its debts as they fall due.

Correct answer!

In option 1 the term 'financial obligations' is a wordy equivalent of 'debts'. If we change 'financial obligations' to 'debts' we also need to change 'fulfil' to 'pay'.

Option 2 uses a noun (fulfilment) where a verb would be clearer. The noun makes two 'of's necessary.

Option 3 is clear and simple, and uses a standard English expression.