Minggu, 29 November 2009

Mungkinkah Belajar Bisnis Di Pusat Perbelanjaan…..?



Pada hari Minggu tanggal 29 November 2009 saya memanfaatkan waktu untuk pergi ke Bandung, maklum Bandung dan sekitarnya selalu menarik saya karena berbagai fasilitas sebagai kota wisata, ada Taman Rekreasi, Kebun Binatang, dan banyak Mall sebagai Pusat Perbelanjaan. Rekreasi tidak harus menunggu liburan akhir tahun tetapi membawa keluarga pada akhir pekan juga menyenangkan dan menambah pengalaman baru bagi anak-anak untuk rekreasi.

Setelah menikmati keindahan Alam di Bandung Utara kami turun untuk mengunjungi salah satu Pusat Perbelanjaan di kota Bandung suasana cukup ramai,banyak Ibu-ibu dan Bapak-bapak membawa Keluarganya. Pusat permainan dan Pusat makanan tiap akhir pekan panen, dengan banyaknya pengunjung Pengusaha untung konsumen senang.

Do I Have Enough Information to Clearly Support My Objective?
Tujuan saya membawa keuarga ke Bandung dan berkunjung ke Pusat Perbelanjaan antara lain disamping berekreasi juga tujuannya adalah memberikan nuansa baru dan mengenalkan pada mereka suatu bisnis yang mempunyai prospek cerah yaitu bidang usaha makanan yang disukai para remaja.Apa yang bisa ditarik pelajaran dari kemajuan perusahan tersebut?

Definition of Marketing.
Suatu barang yang di produksi memerlukan pemasaran yang terarah dan tepat sasarannya. Pengertian pemasaran adalah suatu proses kegiatan bisnis meliputi perencanaan, penentuan harga, promosi, dan mendistribusikan produk tersebut kepasar sesuai dengan tujuan organisasi.(Marketing is a total system of business activities designed to plan, price, promote, and distribute want satisfying products to target markets to achieve organizational objectives (William J. Stanton, Fundamental Of Marketing, Ninth Editon,USA,1991)

A Goal-Oriented Approach
Suatu organisasi dikembangkan untuk tujuan tertentu yang dinyatakan dalam tujuan dan sasarannya, (Organization are developed for specific function expressed in their goal and objectives). Termasuk didalamnya adalah penentuan perencanaan untuk mencapai tujuan yang diharapkan . Siapa yang mengerjakan, kapan waktunya dan dimana harus ditetapkan (Who is to do what, when, and where must be determined).

The Importannce Of Business To Consumer Behavior
Dipojok sebelah kiri ada ruangan begitu ramai dikunjungi konsumen, saya tertarik datang juga kesana dengan membawa keluarga.Ternyata yang dujual donat ,makanan ringan, berbagai minuman.Yang ingin dikemukakan disini adalah bagaiman mengelola suatu cafe dan mengelola para karyawannya:

1.Pengaturan ruangan, yang serasi tempat duduk yang teratur, konsumen merasa baru duduk saja sudah nikmat.
2.Pengaturan pelayanan, konsumen antri dengan tertib, memilih menu yang disukainya.
3.Pelayanan pembayaran, petugas Kasir dengan cekatan menghitung jumlah uang sesuai dengan menu yang harus di bayar.
4.Pelayanan lainnya,kalau jumlah yang dibeli cukup banyak maka pelayan mengantarkan pesanan ketempat duduk.

Developing a Supportive Climate
Salah satu tangung jawab dari seorang manager adalah mengembangkan dan memelihara partisipasi aktip dan hubungan dari bawahannya. Suasana lingkungan yang mendukung dapat tercipta jika seseorang merasa ada kebebasan berbicara dan mengembangkan kreativitasnya. Suasana diperusahaan akan terasa hidup jika ditandai kepercayaan,keterbukaan partisipasi dan indikator lainnya dimana organisasi berorientasi kepada sumber daya manusia (they are characterized by such things as trust, openness, participative decision making, and other indicators that the organization is people-oriented.Demikianlah sekelumit pengenalan pengantar Bisnis dan pulangnya kami membawa oleh-oleh untuk dibawa kerumah,kesimpulannya tujuan tercapai:Rekreasi senang ; makan kenyang ; dan Ilmu Bisnis dapat.

(Selected Readings:William J.Stanton Michael J.Etzel Bruce J.Walker”Fundamentals of Marketing-“Business Communication,Strategies and Solution.John W.Baird.James B.Stull)

Jumat, 20 November 2009

Discussions Can Be An Effective Tool For Change (Bagian 2 habis)




Menumbuhkan Budaya Berani Diskusi
Diskusi sebenarnya merupakan proses pendewasaan dan pengembangan diri sendiri. Dalam tatanan yang lebih teratur seperti di Lembaga Pendidikan Formal, Perusahaan atau Lembaga Pemerintahan, diskusi itu akan lebih bermakna dan berisi jika yang dibahas ada permasalahan, ada perumusan permasalahan, ada analisa permasalahan, dan ada solusinya. Jadi secara singkat diskusi itu mengarah pada problem solving.

Problem Solving

Kadang kala karena alasan waktu Sang Pemimpin menyerahkan masalah pada tim penasehat atau pada eselon kedua di bawahnya dengan pesan; coba selesaikan tapi tanpa diberikan pedoman yang harus diselesaikan sehingga membingungkan koordinator rapat. Seharusnya Sang Pemimpin berkata: Saya ingin membahas masalah ini secara tuntas - I want to talk over this problem once and for all - Masalah ini harus dibahas lebih dulu – This problem must be covered first.
Saya pikir saat ini terlalu banyak pembahasan dari pokok masalah - I think there has been too much discussions of this subject.
Jadi sebenarnya kalau Sang Pemimpin memberikan akar masalah yang jelas, para peserta diskusi tidak akan menjadi bingung, atau mungkin ada cara lain yang lebih tepat. Hal tersebut disesuaikan Kondisi, Situasi, Lingkungan, dan bentuk Organisasi.

Discussions Can Be An Effective Tool For Change
Diskusi yang positif terarah dan tepat sasaran akan membuka pintu bagi kemajuan perusahaan, beri kesempatan anak buah untuk menyampaikan pendapat-pendapatnya, tampung secara baik, buat kelompok dan tentukan jadwal diskusi secara teratur.
Moga-moga diskusi akan banyak bermanfaat bagi kehidupan berorganisasi, karena itu mulailah budayakan berani berdiskusi.
Dengan demikian, diskusi akan menjadi alat untuk mencapai perubahan dan kemajuan Perusahaan, sudahkan Anda memulainya?, bila belum silahkan mencoba. Selamat mencoba dan semoga berhasil. (Selected Reading: Sumber Daya Manusia untuk Indonesia Masa Depan, Penerbit PT Citra Putra Bangsa, dan Penerbit Mizan tahun 1996)

Discussions Can Be An Effective Tool For Change(Bagian 1 dari 2 Tulisan)




Budaya Berani Berdiskusi,Salah….atau Benar..?
Ada orang mengatakan bahwa terjadinya Pengangguran saat ini karena terbatasnya kesempatan kerja (Mungkin… Investor Asing dan Investor Lokal belum berani menanamkan modalnya sebab masih menunggu Iklim Investasi yang sehat dan tertibnya Hukum dan keberhasilan memberantas Korupsi...?)
Faktor lain karena lemahnya Kwalitas Sumber Daya Manusia.
Ada dua komponen dasar Pengembangan Sumber Daya Manusia: (1) Komponen Input yaitu: Kesehatan, Pendidikan, dan Keterampilan (2) Komponen Output yaitu: Angka Kematian, Harapan Hidup, kesegaran jasmani dan lain-lain.

Pengembangan Sumber Daya manusia
Ada tiga sisi peninjauan pengembangan Sumber Daya Manusia yaitu(1).Dari pengertian Ekonomi; (2).Dari segi Politik;(3).Dari segi Sosial Budaya.
Dalam pengertian Ekonomi, pengembangan Sumber Daya Manusia dapat digambarkan suatu asset yang perlu dikembangkan .
Dari segi Politik pengembangan Sumber Daya Manusia dipersiapkan untuk menjadikan manusia yang penuh dengan rasa tanggung jawab,berpartisipasi aktif dalam politik terutama dalam menumbuhkan sistem Demokrasi.
Dari segi Sosial Budaya pengembangan Sumber Daya Manusia dimaksudkan untuk membantu orang kearah kehidupan yang lebih sejahtera. Dari sudut pandang tersebut seharusnya proses pengembangan Sumber Daya Manusia membuka pintu modernisasi ( Kemajuan yang mengikuti perubahan).

Banyak cara untuk pengembangan Sumber Daya Manusia antara lain :
1.Melalui pendidikan formal-mulai dari pra Sekolah,Sekolah Dasar,Sekolah Lanjutan,Akademi dan Perguruan Tinggi.
2.Melalui Pendidikan non formal, dapat berupa Kursus-kursus atau Pendidikan jarak jauh (Long Distance Course), magang pada Perusahaan atau pada Organisasi lainnya.
3.Pengembangan Diri Sendiri yaitu seseorang atas inisiatif sendiri berusaha mendapatkan pengetahuan keterampilan dan belajar dari orang lain melalui diskusi kelompok. (Selected Reading: Sumber Daya Manusia untuk Indonesia Masa Depan, Penerbit PT Citra Putra Bangsa, dan Penerbit Mizan tahun 1996)

Rabu, 18 November 2009

Is there a Smile That's Part Of Instruments Promotion??



Adakah Senyum Itu Bagian Dari Instrumen Promosi ??
Tumbuhnya berbagai Pusat Perbelanjaan di berbagai Kota Besar sangat menggembirakan.Dikatakan menggembirakan karena Pusat Perbelanjaan saat ini telah memanjakan konsumen dengan berbagai fasilitasnya.Disisi lain dengan banyaknya konsumen,kegiatan usaha didalamnya banyak memperoleh manfaat,misalnya:
1.Pusat penyediaan makanan banyak dikunjungi pengunjung yang makan.
2.Toko yang menyediakan berbagai kebutuhan Primer dan Sekunder rajin melayani pembeli.

Faktor pelayanan menjadi tolak ukur keberhasilan usaha. Pelayanan dapat bervariasi dan ada hubungannya dengan Produk (product), harga (Price), tempat (Place),Promosi (Promotion),melalui kemampuan fisik (Physical Evidence),melalui proses pelayanan (Process Design),dan melalui berbagai pelibatan (Participant).

Pelayanan Produk
Pelayanan produk artinya,konsumen dihadapkan kepada stock yang cukup.Sehingga konsumen mudah mencari barang yang diperlukan;Produk tidak Kadaluarsa baik isi maupun kemasannya.

Faktor Harga
Ada berbagai pelayanan yang menyangkut faktor harga antara lain:pemberian diskon;kupon berhadiah;kebijakan penjualan mingguan;harga spesial bagi konsumen yang memerlukan barang untuk dijual lagi.

Factor Lokasi
Lokasi yang jauh dari keramaian atau tempat pemukiman sangat mempengaruhi pendirian Supermarket,bila hal tersebutpun terjadi harus disertai ekstra pelayanan seperti,layanan pesanan barang .

Inti dari kegiatan Promosi
Promosi adalah fungsi pemasaran yang fokus untuk mengkomunikasikan program-program pemasaran secara persuasive kepada target audience (pelanggan-calon pelanggan) untuk mendorong terciptanya transaksi-pertukaran antara perusahaan dan audience.Kegiatan promosi dilakukan untuk mencapai berbagai tujuan sebagai berikut:
- Menciptakan atau meningkatkan awareness produk atau brand.
- Meningkatkan preferensi brand pada target pasar.
- Meningkatkan penjualan dan market share.
- Mendorong pembelian ulang merk yang sama.
- memperkenalkan produk yang baru.
- Menarik pelanggan baru (Cravans,1991)
Semakin banyak dilakukan promosi semakin banyak pula pengunjung datang.Promosi dapat dilakukan dengan berbagai cara antara lain pemasangan iklan di berbagai media cetak,media elektronik maupun media lainnya,biasanya promosi memerlukan anggaran yang besar.

Adakah senyum bagian dari Instrumen promosi?
Cara yang lebih mudah,praktis,dan hemat biayanya bila pengelola toko menempatkan pramuniaganya dengan orang-orang yang berpenampilan menarik,cantik,dan yang utama murah senyum,serta santun terhadap pelanggan. Dengan senyum menunjukkan keramah-tamahan,dengan senyum bisa menarik pembeli,.,Ada slogan mengatakan: “Karena keramahtamahanmu aku datang; karena senyummu aku kembali ;karena hargamu aku membeli; karena pelayananmu yang baik aku datang kembali”

Faktor keramahan,santun,dan murah senyum serta pelayanan yang baik dari petugas lapangan akan membawa pengaruh pembeli datang lagi ke Supermarket. Jadi keramah-tamahan merupakan factor keunggulan yang harus diusahakan.

Selected Reading: Ali Hasan,S.E.,M.M., MARKETING,MedPress,2008,p.367.

Kamis, 05 November 2009

THE GREAT LEADERS ARE GREATSALES PEOPLE


Bagian ke satu

MAMPUKAH SAYA MENJADI MANAGER PENJUALAN
Beberapa minggu lalu tepatnya pada hari Sabtu, sewaktu saya dengan keluarga berlibur di Villa Mekar Raya, Desa Batulayang Cisarua Bogor, kedatangan tamu, seorang anak laki muda yang memperkenalkan dirinya putra dari orang tua teman lama saya ,berdomisili di Jakarta. Anak muda tersebut memperkenalkan dirinya dengan sangat ramah dan senyum bernama Son Abdullah bersama inisial AB. Dia menceritakan pengalaman hidupnya, sekolahnya, sampai Perguruan Tinggi dan sekarang lagi meniti karier di bidang Penjualan .Sebelumnya dia berpengalaman kerja dibidang Administrasi Keuangan. Setelah basa basi obrolan awal dia mengajukan pertanyaan sebagai berikut: “ Om mampukah saya untuk menduduki posisi jabatan yang lebih tinggi sebagai Manager Penjualan?. Posisi tersebut saat ini lowong dan kemungkinan harus segera diisi seperti yang pernah diutarakan atasan kepada saya.
Untuk menjawab pertanyaan anak tersebut, saya menanyakan, persyaratan apa yang diajukan atasan Anda?,
Dia menjawab:-“reporting to the General Manager”.,- “you will have responsibility for sales revenue and profitability growth”.
Apa lagi syarat lainnya? Dia menjawab:
- “5 years of sales/ marketing experience”., -“ability to work independently under pressure”.,- “excellent interpersonal and relationship development skills”.
Saya berpikir dalam hati nampaknya anak muda tersebut sangat paham menguasai bahasa Inggris. Hal ini sangat penting dalam pergaulan terutama dalam komunikasi bisnis. Percakapan dilanjutkan dengan pemahaman definisi selling.(lanjut ke bagian ke dua)

Bagian ke dua

DEFINISI SELLING

Selling is persuasion

Selling as the art of persuading another person to do some think when you do not have, or do not care to expert, the direct power to force the person to do it.
Selling as “the personal or impersonal process of assisting and/or persuading a prospective customer to buy a commodity or a service or to act favorably upon an idea that has commercial significance to the seller.
Secara bebas dapat disimpulkan Selling adalah – seni membujuk,mengajak dan meyakinkan calon pembeli untuk membeli barang ataupun jasa sesuai dengan harga yang disepakati.

YOUR SUCCESS IN BUSINESS

Keberhasilan Anda dibidang penjualan, sangat tergantung kepada kemampuan Anda untuk menjual berbagai produk barang dan jasa kepada pembeli.
Dari pengertian di atas mengandung arti kemampuan untuk memotivasi orang lain melakukan hal yang sama demi tercapainya tujuan penjualan.

THE GREAT LEADERS ARE GREAT SALES PEOPLE
Dasar dari kepemimpinan (leadership) adalah kemampuan untuk mengelola orang. Posisi manager dalam bisnis adalah, bagaimana mengetahui permasalahan dalam perusahaan dan mengatasi dan mengembangkan dengan berbagai sumber daya dalam rangka memenuhi pelanggan. Intinya adalah ability to people and the main task is to persuade the follower.
Demikianlah percakapan mengenai penjualan, mungkin ada di antara anda yang berminat menambahkannya terimakasih.
(selected reference Frederic A. Russell / Frank H. Beach / Richard H. Buskirk, SELLING Principles and Practices, tahun 1973)

Rabu, 04 November 2009

BANKING SERVICES AND METHODS OF PAYMENT


PART – 1
BANKING SERVICES AND METHODS OF PAYMENT

Goods Shipped on Consignment
From the importer’s point of view this method of payment is the most favourable because there is no commercial risks involved. Under the term of consignment, the importer will remit payment only after the goods are sold, and if the goods are not saleable he may even return them to the supplier without any payment. However, from the point of the view of exporter, consignment operations are best for certain categories of goods particularly fast moving consumer products which require the maintenance of ample stock in the importing country (importing agent) to meet demand. The manufacturer or supplier will normally extend this favourable method of payment to the well established and trustworthy agent only

On Open Account
The open account system is also the most favourable method of payment for the importer. The mechanism is simple and rapidly becoming the main method of settlement for international trade. Under the open account system the supplier will dispatch he goods, forward the relative invoice and shipping documents made out to the order of the importer, and then wait for payment say 30 or 60 days from the date of invoice. If the supplier expect prompt payment he may offer discount incentive e.g., 5% discount fore payment within 14 days from date invoice or statement. (Goh Tianwah, EXPORT-IMPORT PROCEDURES & DOCUMENTATION, 1990 )


PART – 2
Method Of Transfer of Funds

Importer may remit proceeds of sales in the following ways:
1. T.T. – Telegraphic Transfer- This is the most speedy method of settlement as the importer instructs his bankers to send a short cable to their correspondent with instruction to pay the supplier a certain sum of money. In this case the importer should inform the supplier of such payment by telex.
2. M.T.- Mail Transfer- This is another method of settlement, the buyer can instruct his bank to remit fund by air mail transfer through is branch or overseas correspondent with instruction to pay the supplier.
3. Importer’s Chaques - Importer may settle his account with the overseas supplier by means of his cheque drawn on his own banker and made payable to the supplier. In normal banking practice, such cheque will be treated by foreign bank on collection basis and subject to final payment by the drawer.

Bill Finance By Bank
The exporter who sells goods to an overseas buyer on credit terms can request his bank to make an advance against the security of the documentary bills. This method of finance is usually known as purchase of documentary collections subject to final payment by the buyer. In other words, the purchasing bank has the right of recourse to the exporting customer in the event that the buyer fails to pay the bill.
(Goh Tianwah, EXPORT-IMPORT PROCEDURES & DOCUMENTATION, 1990 )

Part – 3
06-Nov-2009

The banking procedure is as follows:-
1. The exporting customer draws a bill of exchange on the buyer for the full value of the invoice. The bill of lading must be in negotiable form, that is consigned to order and endorsed in blank by the shipper. The insurance policy/certificate also must be blank endorsed so that the title to the goods can be easily passed on to a final buyer. The documents must be accompanied by a remittance letter.
2. The financing bank requires a letter of hypothecation signed by the exporting customer. The purpose of this document is to entitle the bank to take possession of the goods in the event that the buyer files to pay the bill and also in the consequence of the financing bank’s inability to recover the loan made to the exporter.
3. When the bill is finally paid, the bank’s will charge the customer with interest payable at the bank’s current rate for the period from the that of negotiation up to the approximate that of arrival of the proceeds of the bill. In some cases, interest is payable by the buyer.
4. Normally, the lending bank may advance from 50% up to 100% of in the voice value and hold the balance, if any, as margin on bill’s. When the relative bill is finally paid by the buyer, the bank will release the balance of the bill amount to the customer after charging interest due thereon.

Part – 4

Banking Procedure On Bills For Collection
In normal practice most exporter will usually entrust the collections to their bankers (remitting banks) which may take about one to two days to process and forward the documents to their overseas branch or correspondent bank (collecting bank) for collection. On receipt of the relative document the collecting bank will follow the instructions given in the collection order and deliver the documents to the drawee for payment or acceptance depending on the tenor of the bill.

D/P – Document Against Payment
Documents against payment term is similar to C.O.D. (cash on delivery) or C.A.D. (cash against documents). Under D/P term, the bill usually payable at sight (on demand). In some cases, D/P bill can be drawn payable “At 30 days D/P.” which means documents against payment may be deferred for a period up to 30 days after sighting by the drawee. Anyway, the collecting bank will not release the documents until payment has been received from the drawee.

D/A – Document Against Acceptance
Where an exporter who sells goods on credit terms can draw a time bill (also known as usance bill) payable at a future date e.g. “ At 60 days after sight” or “At 120 days after the date of this draft” or At 80 days after the date of bills of lading.” This type of usance bill is usually under D/A term – which means the collecting bank is authorized to release the documents to the drawee only after his acceptance of the bill.(Goh Tianwah, EXPORT-IMPORT PROCEDURES & DOCUMENTATION, 1990 )

Selasa, 03 November 2009

USE OF FINANCIAL ACCOUNTING INFORMATION

Appropriate use of financial accounting information requires a knowledge of the characteristics and limitations of financial accounting. Financial accounting information is produced for certain purposes by the use of conventional principle. Use of the information for other purposes of without a general knowledge of its characteristic and limitations may lead to misinterpretation and errors.

An important characteristic of financial statements, for example, is that the information they contain describes the past, while decision making is oriented toward the future. A record of past events and a knowledge of past position and changes in position, however, help users evaluate prior decisions and this information is also a starting point for users in predicting the future. Decision makers should not assume, however, that the conditions that produced past results will necessarily continue in the future.

Financial statements are designed to provide an important part of the information that users need for many of their decision. The information contained in the statements should not be relied on exclusively, however, and should be supplemented by other information about the specific prospects of the company, the industry in which it operates, and the economy in general.

A knowledge of the characteristics and limitations of financial statements also helps users avoid putting undue reliance on single measures or the results of a single year, for example, should not be overemphasized since these amounts are derived from complex computations, are based on estimates and judgments, and often have their meaning modified by information in the notes to the financial statements. In reaching decisions users should consider movements and judgments, the possible effects of information disclosed in notes and similar factors.
Reference: Commerce Clearing House, Inc, Chicago, 1980, “Professional Standards Volume 3 Accounting”.

Minggu, 01 November 2009

Accounting As The Basis For Business Decisions

How do business executives know whether a company is earning profits or incurring losses? How do they know whether the company is solvent or insolvent, and whether it probably will be solvent, say, a month from today? The answer to both these question in one word is accounting. Accounting is the process by which the profitability and solvency of a company can be measured. Accounting also provides information needed as a basis for making business decisions that will enable management to guide the company on a profitable and solvent course.
For specific examples of these decisions, consider the following questions.
1. What prices should the firm set on its products? If product is increased,
2. What effect will this have on the cost of each unit product?
3. Will it be necessary to borrow from the bank?
4. How much the costs increase if a pension plan is established for employees?
5. Is it more profitable to produce and sell product A or product B?
6. Shall a given part be made or be bought from suppliers?
7. Should an investment be made in new equipment?

All these issues call for decisions that should depend, in part at least, upon accounting information. It might be reasonable to turn the question around and ask: What business decisions could be made intelligently without the use of accounting information? Examples would be hard to find.
In large-scale business undertakings such as the manufacture of automobiles or the operation of nationwide chains of retail stores, the top executives cannot possibly have close physical contact with and knowledge of the details of operations. Consequently, these executives must depend to an even greater extent than the small business owner upon information provided by the accounting system.
We have already stressed that accounting is a means of measuring the results of business transactions and of communicating financial information. In addition, the accounting system must provide the decision maker with predictive information for making important business decisions in a changing world.
Reference : Walter B. Meigs, Robert F. Meigs, McGraw-Hill Book Company New York, 1987, “Financial Accounting”.

FINANCIAL ACCOUNTING


Two Primary Business Objectives
The management of every business must keep foremost in its thinking two primary objectives. The first is to earn a profit. The second is to stay solvent, that is, to have on hand sufficient cash to pay debts as they fall due. Profits and solvency, of course, are not the only objectives of business managers. There are many others, such as providing jobs for people, protecting the environment, creating new and improved products, and providing more goods and services at a lower cost. It is clear, however, that a business cannot hope to accomplish these objectives unless it meets the two basic tests of survival operating profitably staying solvent.
A business is a collection of resources committed by an individual or group of individuals, who hope that the investment will increase in value. Investment in any given business, however, is only one of a number of alternative investments available. If a business does not earn as great a profit as might be obtained from alternative investments, its owners will be well-advised to sell or terminate the business and invest elsewhere. A business that continually operates at a loss will eventually exhaust its resources and be forced out of existence. Therefore, in order to operate successfully and to survive, the owners or managers of an enterprise must direct the business in such a way that it will earn a reasonable profit.

Business concerns that have sufficient cash to pay their debts promptly are said to be solvent. In contrast, a company that finds itself unable to meet its obligations as they fall due is celled insolvent. Solvency must also be ranked as a primary objective of any enterprise, because a business that becomes insolvent may be forced by its creditors to stop operations and its existence.
Reference : Walter B. Meigs, Robert F. Meigs, McGraw-Hill Book Company New York, 1987, “Financial Accounting”.