Each item in this section consists of a sentence with an underlined word followed by four options. Select the option that is nearest in meaning to the underlined word. The Managing Director of the company declared that he is _broke_ and there is a need to seek support from the government.

In the context of business and finance, the term 'broke' is an informal adjective used to describe an individual or entity that has no money or is unable to pay its debts. When a company 'goes broke,' it loses money and cannot continue its operations or meet its financial obligations. This state of financial insolvency signifies a lack of funds to meet liabilities. While 'insolvency' is the financial state of being unable to pay debts, 'bankruptcy' is the formal legal procedure for liquidating a business that cannot pay its debts [1]. In the given sentence, the Managing Director's declaration of being 'broke' and seeking government support aligns with the definition of being bankrupt or insolvent, as it implies a total lack of resources to sustain the business. Therefore, 'Bankrupt' is the nearest synonym among the options.

Sources

1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 3: Money and Banking - Part II > 3.10 Insolvency and Bankruptcy Code 2016 > p. 139