Solvency is the ability of the business to pay all its debts if it sold out. If the total value of all assets is more than all debts, the farm or business is said to be solvent. If the sale would not generate enough cash to pay off all debts, the farm is insolvent. Solvency is important in evaluating the financial risk and future borrowing capacity of the business. It can also help evaluate and communicate how much both the producer and the lender have invested in the business.
These resources are brought to you by the Cooperative Extension System and your Local Institution
Welcome
eXtension is an interactive learning environment delivering the best, most researched knowledge from the smartest land-grant university minds across America.
Have a question? Try asking one of our Experts
What does the term "solvency" mean in relation to operating a business?
Last Updated: October 02, 2009
Have a specific question? Try asking one of our Experts
Unlike most other resources on the web, we have experts from Universities around the country ready to answer your questions.
This resource area was created by the: Entrepreneurs & Their Communities community
Resource Area Feeds
In This Resource Area
TOPICS:
Got an hour? Watch & Learn
Youth Entrepreneurship
What do kids know about business? You'll be surprised!
E-Commerce Learning Modules
- Direct Marketing for Specialty Food Products. Learn strategies to direct market and sell specialty food products.
- Electronic Retailing. More and more of our communication and social behaviors involve computers and networks. Nonetheless, it is not as simple as it might appear to connect the dots on electronic retail and turn it into a successful venture.
- Going Global: A Guide for e-Commerce Expansion. A worksheet driven learning lesson for the established e-commerce business exploring export/import opportunities.
- A Primer for Hispanic Small Businesses. In both English and Spanish, this module was founded in the belief that e-commerce education should not only be available to Spanish Speaking business owners but also that small business stand to benefit greatly from the patronage of the Spanish speaking consumer.
- Marketing Food Specialty Products OnlineThe purpose of this learning module is to assist food retailers in making decisions on the use of online technologies in their marketing and planning strategies.
RESOURCES:
Build Your Business
- Online Tutorial on Farm Leasing
- Strategies to Improve Farm Business Management
- Visual Merchandising: The Silent Salesperson. View a recording of a marketing workshop conducted by Glenn Muske, Oklahoma State University. The workshop covers some key aspects of display as a sales tool. The workshop is approximately 45 minutes long.
Building Entrepreneurial Communities
- E-Commerce Module:Connecting Rural Communities
- Strengthening Competitive Advantage of Rural Businesses with e-Commerce and Experience Economy Strategies
- Mini-Course: Developing Diversified & Value-Added Agribusinesses
Blogs to Watch