Which One of the Following Unsecured Liabilities Has the Highest

question 20

Multiple Choice

Which one of the following unsecured liabilities has the highest priority when an insolvent company is about to be liquidated?

• A) Federal income taxes payable.
• B) Claims for expenses of administering the bankruptcy.
• C) Loans made to the company by its stockholders.
• D) Employees' claims for salaries.
• E) Bank loans.

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Definitions:

High-performance Organization

An organization characterized by significantly higher productivity and efficiency compared to its competitors.

Occupational Intimacy

The closeness and personal connection that individuals may develop with their work, colleagues, or professional environment.

Policies

Guidelines or rules established by organizations or governments to direct actions and decisions.

Employees' Needs

The physiological, security, social, esteem, and self-actualization requirements of employees that, when met, can lead to higher motivation and job satisfaction.