Now that the company is insolvent , it will shut down.

Step 1: Analyze the question You need the word closest in meaning to insolvent. The sentence gives a clue: the company "will shut down" because it is insolvent. So the word must describe a serious financial problem.

Step 2: Explain the concept Insolvent (adjective) means unable to pay one's debts; having less money than what is owed. The related noun is insolvency. A company that is insolvent cannot meet its financial obligations, so it often closes.

Step 3: Test each option

• A. overworked: means made to work too hard. It has nothing to do with money or debts. ✗
• B. unstable: means not steady or secure. A company could be unstable for many reasons, but this is too general and does not mean it cannot pay its debts. ✗
• C. bankrupt: means unable to pay debts and legally declared financially ruined. This matches insolvent almost exactly. ✓
• D. affluent: means wealthy. This is the opposite of insolvent. ✗

Step 4: Answer The correct option is C. bankrupt. The sentence reads well with it: "Now that the company is bankrupt, it will shut down.

Exam tip 💡 Break the word down. The prefix in- means "not," and solvent relates to being able to pay (think "dissolve" money into debts being settled). So in-solvent means "not able to pay." In JAMB synonym questions, always check the sentence for context clues, and watch for an opposite among the options (here, affluent), because it is often placed there as a trap.