In Which Order of Preference Are a Company's Creditors Paid

question 34

Multiple Choice

In which order of preference are a company's creditors paid in the event of bankruptcy?

• A)Secured first, then preferred, then unsecured of the above
• B)Preferred first, then secured, then unsecured
• C)Secured first, then unsecured, then preferred
• D)Any may be applied, according to agreements among the creditors.

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Definitions:

Late Shift

In work contexts, a shift that starts late in the day or evening and can extend into the night; in cognitive terms, a late change or shift in opinion or strategy.

Foot-In-The-Door Technique

The foot-in-the-door technique is a persuasion strategy where agreeing to a small request increases the likelihood of agreeing to a larger request later.

Lowballing Effect

A psychological phenomenon where an initially lower cost is presented to secure agreement, followed by the revelation of additional costs.

Social Commitment

An individual's sense of responsibility or duty towards society, which can influence behavior and decisions towards achieving societal wellbeing.