Alberta General Insurance Level 1 Practice Exam

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Ace your Alberta General Insurance Level 1 Exam with our comprehensive practice quiz. Tailored to mimic the real test, our quiz offers detailed explanations, expert tips, and all you need to succeed. Start your path to becoming a licensed professional today!

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What indicates a business's ability to meet its long-term financial commitments?

  1. Profitability

  2. Market share

  3. Solvency

  4. Revenue growth

The correct answer is: Solvency

Solvency is a measure of a company's financial health and ability to meet its long-term financial commitments. It takes into account the company's assets, liabilities, and overall financial structure. A company may have high profitability or market share, but that does not necessarily mean it has enough financial resources to sustain its operations in the long run. Revenue growth, while important, is also not an indication of a company's ability to meet its long-term financial commitments. Therefore, solvency is the best answer as it specifically measures a company's financial stability and capability.