In Case of Bankruptcy and Liquidation of Assets,what Is the Order

question 55

Multiple Choice

In case of bankruptcy and liquidation of assets,what is the order of the claimants?

• A)Debt holders,equity holders and preferred shareholders equally.
• B)Debt holders,preferred shareholders,equity holders.
• C)Debt holders,equity holders,preferred shareholders.
• D)Equity holders,debt holders,preferred shareholders.

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Definitions:

Expectation

A belief or anticipation about the future, shaping one's perception of upcoming events or outcomes.

Social Traps

Situations where individuals or groups are unable to escape adverse conditions due to conflicting interests.

Drought

An extended period of deficient precipitation resulting in water scarcity that affects ecosystems, agriculture, and water supply.

Water Reserves

Stored or available water in natural or artificial reservoirs that can be used for various purposes.