Which of the Following Would Be a Preferred Creditor in a Corporate

question 49

Multiple Choice

Which of the following would be a preferred creditor in a corporate bankruptcy?

• A)a supplier owed $35,000 for goods it had sold to the corporation
• B)40 employees who are each owed $2,000 in wages
• C)a landlord owed 2 month's rent totaling $30,000
• D)a car dealer with a chattel mortgage of $20,000 on one of the company's trucks
• E)both B and C

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Definitions:

Fixed Costs

Expenses that remain constant regardless of production or sales volume, including rent, salaries, and insurance premiums.

Marginal Costs

The additional cost incurred by producing one extra unit of a product or service, crucial for pricing and production decisions.

Fixed Costs

Expenses that do not change with the amount of goods or services produced by a business.

Raw Materials

The basic materials from which products are made, often extracted from natural resources and used in manufacturing processes.