Which of the Following Claims Is First to Be Paid

question 13

Multiple Choice

Which of the following claims is first to be paid in a Chapter 7 liquidation?

• A) secured creditors
• B) the federal government for taxes due
• C) the expenses incurred by those administering the bankruptcy process
• D) none of the above

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Definitions:

Outermost Shell

The last or furthest energy level of an atom where electrons can be found, significant in determining an element's chemical properties.

Atomic Mass

Average of atom mass units for all the isotopes of an atom.

Ionic Compound

A chemical compound composed of ions held together by ionic bonds, typically formed between metal and non-metal elements.

Calcium Chloride

A chemical compound used in various applications, including as a de-icing agent, in food preservation, and in laboratory settings to provide a source of calcium ions.