What Is the Correct Priority of the Following Claims, Once

question 8

Multiple Choice

What is the correct priority of the following claims, once a corporation is determined to be bankrupt?

• A) Administrative expenses, wages claims not exceeding $2,000, government tax claims, debtholder and then equity holder claims.
• B) Administrative expenses, wages claims not exceeding $2,000, government tax claims, equity holder and then debtholder claims.
• C) All wage claims, administrative expenses, debtholder claims, government tax claims and equity holder claims.
• D) All wage claims, administrative expenses, debtholder claims, equity holder claims and government tax claims.

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Definitions:

Joint Chiefs

The Joint Chiefs of Staff is a body of senior uniformed leaders in the United States Department of Defense who advise the President, the Secretary of Defense, the Homeland Security Council, and the National Security Council on military matters.

Military Service Chiefs

The senior leadership of the various branches of the military, responsible for overall management and operational readiness.

National Guard

A reserve military force composed of state National Guard militia members or units under both state and federal control.

State Department

A federal executive department responsible for carrying out U.S. foreign policy and managing diplomatic relations.