The ability to generate future revenues and meet long-term obligations is referred to as: . liquidity and efficiency. b. solvency. c. profitability. d. market prospects.

The correct answer is B

Explanation:

Solvency is the term which is described or defined as the ability or the capability of the company or firm to meet or fulfill its long term debts and also the financial obligations.

It is vital for staying in the business as it states the ability of the company for continuing the operations into the foreseable future.

Therefore, the ability for generating the future revenues or profits and meet the long term liabilities is known as the Solvency.

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