If your liabilities are greater than the value of your assets you are consideredQuestion 6Select one:A.unstableB.bankruptC.insolventD.unbalanced

Break Down the Problem

1. Identify the key terms: liabilities, assets, and the context of financial status.
2. Understand what each option (A-D) means in relation to financial health.

Relevant Concepts

1. Liabilities: What you owe to others.
2. Assets: What you own that has value.
3. Insolvency: A financial state where liabilities exceed assets.

Analysis and Detail

• When liabilities surpass assets, it indicates that the entity (individual or organization) does not have enough value in their assets to cover their debts.
• This situation can lead to bankruptcy, although they are not synonymous. Insolvency is specifically the condition of having more liabilities than assets.

Verify and Summarize

1. A. unstable: This describes a lack of stability but not specifically related to liabilities and assets.
2. B. bankrupt: This is a legal status that often follows insolvency but is not the condition itself.
3. C. insolvent: This directly describes the condition where liabilities exceed assets.
4. D. unbalanced: While this suggests a disparity, it lacks the specificity of financial terminology.

Final Answer

The correct answer is C. insolvent. This term accurately describes a situation where liabilities are greater than assets.