Duncan Corp

question 26

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. What class of creditor is the supplier of steel?

• A)Unsecured
• B)Secured
• C)General
• D)Common
• E)Preferred

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Definitions:

Sugar Act

A law passed by the British Parliament in 1764, lowering the duty on imported molasses, aiming to strengthen the collection of trade duties under the Navigation Acts.

Raise Revenue

The process by which governments generate funds, typically through taxes, fees, or levies, to finance public services and projects.

Regulate Trade

The activity of controlling or governing trade between states or countries through laws and regulations to ensure fairness, efficiency, and safety.