Which One of the Following Unsecured Liabilities Has the Highest

question 20

Multiple Choice

Which one of the following unsecured liabilities has the highest priority when an insolvent company is about to be liquidated?

• A) Federal income taxes payable.
• B) Claims for expenses of administering the bankruptcy.
• C) Loans made to the company by its stockholders.
• D) Employees' claims for salaries.
• E) Bank loans.

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Definitions:

Democrats

A member or supporter of the Democratic Party, one of the two major political parties in the United States, generally associated with progressive policies.

Congress

The national legislative body of the United States, consisting of the Senate and the House of Representatives.

Labor Disputes

Conflicts between employees and employers regarding work conditions, wages, and other employment terms.

Totalitarian

A form of government that seeks to control all aspects of public and private life, often through coercion and repression.