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 Assets

Long-term tangible assets that are used in the operations of a business and are not likely to be converted to cash in the short term.

Warehouse Financing

A form of financing used by banks and other institutions to loan money to companies using inventory as collateral.

Trust Receipt

A trust receipt is a financial document issued by a bank to a buyer who has obtained a loan to purchase goods, where the buyer agrees to hold the goods in trust for the bank until the loan is repaid.

Inventory Loans

Short-term loans or lines of credit secured by a company’s inventory, used to purchase products for sale.