Which of the Following Is an Incorrect Priority of Claims

question 12

Multiple Choice

Which of the following is an incorrect priority of claims in the event of liquidation? (Note: The first item would be paid first.)

• A) Secured creditors, Wages due employees, Unsecured creditor claims, Common shareholders
• B) Secured creditors, Unsecured creditor claims, Preferred shareholders, Common shareholders
• C) Secured creditors, Administration expenses, Common shareholders, Preferred shareholders
• D) Secured creditors, Wages due employees, Taxes due federal government, Preferred shareholders

---

Definitions:

Normative Negotiations

Negotiations based on establishing standards or norms that are acceptable to all parties involved.

Principled Negotiations

A negotiation strategy that focuses on finding mutually beneficial solutions by separating the people from the problem, focusing on interests rather than positions, generating a variety of options before deciding, and insisting that the agreement's results be based on some objective standard.

Disputes

Conflicts or disagreements between parties that can arise from differing views, interests, or claims.

Integrative Negotiations

A negotiation strategy focused on creating mutually beneficial agreements by addressing the underlying interests and needs of all parties involved.