Which of the Following Claims Will Be Paid First from the Debtor's

question 47

Multiple Choice

Which of the following claims will be paid first from the debtor's estate in a Chapter 7 bankruptcy?

• A) A gap creditor with a claim of $2,000
• B) A state claiming $5,000 in back taxes
• C) The trustee's expenses of $3,000
• D) Employees claiming unpaid wages of $4,000 for wages earned within 120 days of the bankruptcy filing

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Definitions:

Price-Earnings Ratios

A financial metric used to evaluate the valuation of a company's stock, calculated as the market price per share divided by the earnings per share.

Earnings per Share

A company's net profit divided by its number of outstanding shares, indicating how much money each share makes in net income.

Annual Dividend

The total amount of dividends paid to shareholders over a year.

Share

A unit of ownership in a company or financial asset that represents a proportionate claim on its assets and earnings.