ICCSSL Business Law Practice Questions - ICCSSL Business Law Module (Subject 2306) Exam

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Under the Sri Lankan Companies Act No. 7 of 2007, what two tests must be satisfied for a company to meet the 'solvency test'?

The current ratio test and the quick ratio test The asset coverage test and the debt service coverage test The liquidity (cash flow) test and the balance sheet (net assets) test The working capital test and the capital adequacy test

Correct Answer:

The liquidity (cash flow) test and the balance sheet (net assets) test

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