Which of the Following Describes a Correct Priority of Claims

question 362

Multiple Choice

Which of the following describes a correct priority of claims in a bankruptcy liquidation?

• A) Wages, government tax claims, consumer claims, and preferred stockholders.
• B) Government tax claims, bankruptcy expenses, unsecured creditors, preferred stockholders.
• C) Bankruptcy expenses, consumer claims, unsecured creditors, government tax claims.
• D) Government tax claims, unsecured creditors, preferred stockholders, bankruptcy expenses.
• E) Bankruptcy expenses, wages, unsecured creditors, preferred stockholders.

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Definitions:

Declare War

The formal act by which a nation-state announces and justifies its intent to engage in armed conflict against another state or organization, often requiring approval by its government or legislature.

Commander-in-Chief

The title given to a person who exercises supreme command and control over an armed forces branch or the entire military of a nation.

Veto Legislation

The power of an executive authority to refuse approval of a bill or proposal, preventing its enactment into law.

Discretion

The freedom to decide what should be done in a particular situation, often given to officials or agencies in executing laws and policies.