With Respect to a Distribution to a Bankrupt's Creditors,which of the Following

question 57

Multiple Choice

With respect to a distribution to a bankrupt's creditors,which of the following is a distinguishing characteristic of a preferred creditor?

• A) Each is paid a reasonable amount for supplies according to their order of priority.
• B) Preferred creditors typically have a security interest in a particular asset.
• C) Each is paid a reasonable amount for services according to their order of priority.
• D) Preferred creditors are guaranteed a minimum $3000 recovery.

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Definitions:

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