When a Corporation Is Liquidated,the First Group of Persons to Be

question 38

True/False

When a corporation is liquidated,the first group of persons to be paid are the preferred creditors.

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Definitions:

LLCs

Limited Liability Companies, a business structure in the United States where the owners are not personally liable for the company's debts or liabilities.

First Nation

A term used in Canada to denote indigenous peoples, primarily those formerly referred to as "Indians."

Passive Investors

Investors who take a long-term strategy, typically relying on index funds or ETFs, avoiding frequent trading.

LLC Losses

Refers to financial deficits that a Limited Liability Company (LLC) incurs during its operational activities, affecting the company's bottom line and potentially its members' financial contributions.