On Termination of a Corporation,which of the Following Has the Highest

question 19

Multiple Choice

On termination of a corporation,which of the following has the highest priority for payment?

• A)Dividend arrearages owed to preferred shareholders
• B)Claims of common shareholders
• C)Claims of creditors
• D)Claims of directors

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Definitions:

Reaction

A process in which chemical substances interact, leading to the rearrangement of their atomic connectivity and the formation of different substances.

Compound

A substance formed from two or more elements that are chemically combined in fixed proportions.

Common Name

A non-scientific or traditional name given to a substance or organism, often simpler and more widely used than its official name.

Organic Product

A compound predominantly composed of carbon and hydrogen atoms, typically resulting from the chemical reaction of organic substances.