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

question 32

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
• 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.