The Statement That Is True About the Order of Repayment

question 6

Multiple Choice

The statement that is true about the order of repayment for a company in liquidation is:

• A) creditors rank before ordinary shareholders.
• B) wages owing to employees rank last.
• C) ordinary shareholders rank before preference shareholders.
• D) All of the statements are true.

---

Definitions:

External Criticism

a process in the evaluation of historical sources, focusing on the authenticity and origin of the document rather than its content.

Guinness Book

A reference book published annually, listing world records both of human achievements and the extremes of the natural world.

Tertiary

Refers to the third level or stage in a sequence; in education, it commonly relates to post-secondary education such as universities and colleges.

Quaternary

Relating to the fourth stage or division, often used in context of geological periods or the sector of the economy that deals with knowledge-based activities.