In the Hierarchy or Priority of a Company's Securities, the fiRst

question 20

Multiple Choice

In the hierarchy or priority of a company's securities, the first and the last capital providers to get a claim on the assets of a bankrupt company are___________and____________respectively.

• A)Senior unsecured debt holders / Preference share holders
• B)Second lien loan holders / Ordinary equity holders
• C)Senior secured debt holders / Ordinary equity holders
• D)Senior secured debt holders / Subordinated debt holders
• E)Senior unsecured debt holders / Shareholder loans

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Definitions:

Production Possibility Frontier

A curve depicting the maximum attainable combinations of two or more goods and services that can be produced with available resources and technology.

Opportunity Costs

The cost of choosing one option over another, represented by the value of the opportunities or benefits the second-best choice would have provided.

Aggregate Demand

The total demand for goods and services within a particular market or economy at a given overall price level and in a given time period.

Full Employment

A situation where all available labor resources are being used in the most economically efficient way.