What Does "Priority" Mean

question 24

Multiple Choice

What does "priority" mean?

• A)Higher priority confers preferential payout before lower priority claimants.
• B)Refers to the amount of payment that will be made upon bankruptcy.
• C)Lower priority confers preferential payout before higher priority claimants.
• D)Debtors will be paid after the equity holders if there is a bankruptcy.

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Definitions:

Total Utility

The total satisfaction received by a consumer from consuming a particular quantity of goods or services.

Nth Unit

A term referring to the last or latest unit produced or consumed, often used in economics to analyze marginal costs or benefits.

Diminishing Marginal Utility

A principle stating that as a person consumes more of a good, the additional satisfaction gained from consuming an additional unit decreases.

Satisfaction

The satisfaction or quenching of a want, necessity, or craving.