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.

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Definitions:

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The process of a bondholder or an investor submitting a bond's coupon to the issuer to receive interest payment.

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Expenses incurred to promote products or services to potential consumers through various media channels.

GAAP

A body of established accounting conventions and criteria for the preparation of financial reports.

Marketing Manager

A professional responsible for developing, implementing, and executing strategic marketing plans for an entire organization or lines of business and brands within an organization to attract potential customers and retain existing ones.