What is indicated by a business's long-term solvency?

Long-term solvency refers to a business's ability to meet its long-term financial obligations and commitments as they come due. This encompasses the overall financial health of the business, specifically focusing on its capacity to pay off debts and obligations over an extended period.

When a company has strong long-term solvency, it indicates that it has sufficient financial resources, such as cash flow and assets, to cover existing liabilities and navigate through economic fluctuations. This stability is essential for attracting investors, maintaining operations, and engaging in strategic planning for growth and expansion.

Other options, while relevant to different aspects of a business's operations, do not directly address the concept of long-term solvency. Operational stability pertains more to the efficiency of processes rather than financial readiness, marketing effectiveness is concerned with sales reach and consumer engagement, and product quality relates to customer satisfaction and brand reputation. Therefore, choice B accurately captures what long-term solvency signifies in a business context.