What Is the Absolute Priority Rule of the Following Claims

question 30

Multiple Choice

What is the absolute priority rule of the following claims once a corporation is determined to be bankrupt?

• A) Administrative expenses, wages claims, government tax claims, debtholder and then equityholder claims
• B) Administrative expenses, wages claims, government tax claims, equityholder and then debtholder claims
• C) Wage claims, administrative expenses, debtholder claims, government tax claims and equityholder claims
• D) Wage claims, administrative expenses, debtholder claims, equityholder claims and government tax claims
• E) None of these.

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Definitions:

Animal Species

Groups of animals that share common characteristics and can breed amongst themselves, producing fertile offspring.

All Ecosystems

The entirety of ecosystems, encompassing diverse environments from tropical forests to desert habitats, each with their unique interactions among living organisms and their surroundings.

Ethical Concern

A situation that requires individuals or organizations to choose between actions that must be evaluated as right or wrong, often involving a moral dilemma.

Animal Species

Distinct groups of animals that share common characteristics and can interbreed to produce fertile offspring, each adapted to specific environments and ways of life.