With Regard to Priority of Claims in the Payment of Unsecured

question 13

Multiple Choice

With regard to priority of claims in the payment of unsecured debts,which of the following has priority over alimony and child support obligations?

• A) costs and expenses of the administration of the bankruptcy case.
• B) claims arising in the ordinary course of the debtor's business after commencement of the case
• C) claims for wages,salaries or commissions earned within 180 days before the filing of the petition
• D) none of the above

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales activities within a certain scale.

Net Working Capital

A liquidity calculation that represents the difference between a business's current assets less its current liabilities, highlighting operational efficiency and short-term financial health.

Equivalent Annual Cost

A financial metric that calculates the annual cost of owning, operating, and maintaining an asset over its entire life, allowing for the comparison of different assets' costs.

Required Return

This is the minimum rate of return on an investment that investors expect or require to make it worthwhile.