In a Bankruptcy Unsecured Creditors Are Owed a Total of $600,000

question 89

Multiple Choice

In a bankruptcy unsecured creditors are owed a total of $600,000. Unsecured creditor A is owed $300,000, unsecured creditor B is owed $200,000 and unsecured creditor C is owed $100,000. There is only $100,000 available to the unsecured creditors. As a result creditor A will get

• A)$100,000
• B)$75,000
• C)$50,000
• D)$33,333
• E)whatever amount the trustee decides is fair

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Definitions:

Supply Curve

A graphical depiction that shows the relationship between the price of a good or service and the quantity of that good or service that suppliers are willing and able to provide, at given prices.

Supply Curve

A graphical representation showing the relationship between the quantity of goods that producers are willing to sell and the price of those goods.

Determinant Of Supply

A factor that influences the quantity of a good or service that producers are willing to offer for sale at a given price over a period.

Current Production

The total amount of goods and services produced by an economy or firm at the present time.