In a Bankruptcy Proceeding, Which of the Following Debts Will

question 22

Multiple Choice

In a bankruptcy proceeding, which of the following debts will have the lowest priority?

• A) Government tax claims.
• B) Employees who are owed wages earned within 90 days of filing.
• C) Consumers who have paid deposits or prepayments for undelivered goods or services up to $1,800 per consumer.
• D) Creditors with claims in the ordinary course of business incurred after the bankruptcy was filed.
• E) Creditors with claims that arise from the costs of preserving and administering the debtor's estate.

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Definitions:

Sociological Explanation

An analysis that seeks to understand human behavior by examining the societal contexts and structures influencing it.

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An economic and social system that promotes the continuous increase in the purchase and consumption of goods and services.

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The process of interaction and integration among people, companies, and governments worldwide, driven by international trade and investment and aided by information technology.

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The process by which a culture becomes more varied and complex through the incorporation of different ethnic, social, or cultural influences.