Duncan Corp

question 35

Multiple Choice

Duncan Corp. is declared bankrupt. The Royal Bank has a mortgage on its manufacturing plant. Employees have a claim for $1,000 each for unpaid wages. The trustee in bankruptcy's fees are $10,000. An unpaid supplier of steel has a claim for products supplied. Which of the above is a preferred creditor under the BIA?

• A)The bank
• B)The employees
• C)The trustee in bankruptcy
• D)The steel supplier
• E)Both B and C

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Definitions:

Summary Report

A summary report compiles and summarizes the key points and findings from detailed reports, providing an overview of the presented data.

Decentralization

The distribution of decision-making powers and authority away from a central location or authority to local or individual actors.

Authority

The legal or rightful power or right to make decisions, give orders, and enforce rules within a particular scope or role.

Operating Decisions

Choices made by management regarding the day-to-day operations of a business, such as pricing, inventory management, and employment levels.