Under USBankruptcy Code,claims Against the Firm Are Prioritized Along the Lines

question 3

Multiple Choice

Under U.S.Bankruptcy code,claims against the firm are prioritized along the lines of secured creditors followed in order by:

• A)preferred stock holders,common stock holders,and then unsecured creditors after all others have been compensated.
• B)unsecured creditors,preferred stock holders,and then common stock holders after all others have been compensated.
• C)preferred stock holders,unsecured creditors,and then common stock holders after all others have been compensated.
• D)common stock holders,preferred stock holders,and then unsecured creditors after all others have been compensated.

---

Definitions:

Express Authority

Authority expressly given to an agent or representative, defined explicitly in words or writing.

Apparent Authority

a situation where a person appears to have the authority to act for another, leading a reasonable third party to believe that authority exists.

Real Estate Development

The process of purchasing land, financing real estate deals, building or having buildings constructed, and selling or leasing the finished product to end-users.

Express Authority

Is the specific powers granted by a principal to an agent in a contractual agreement to perform certain actions on behalf of the principal.