Which of the Following Is a Distinguishing Characteristic of a Preferred

question 19

Multiple Choice

Which of the following is a distinguishing characteristic of a preferred creditor,with respect to distributing the proceeds of a bankrupt's estate to creditors?

• A) Each is paid a reasonable amount for supplies according to their order of priority.
• B) Preferred creditors typically have a security interest in a particular asset.
• C) Each is paid a reasonable amount for services according to their order of priority.
• D) Preferred creditors are guaranteed a minimum $3000 recovery.