What Is the Correct Priority of the Following Claims Once

question 13

Multiple Choice

What is the correct priority of the following claims once a corporation is determined to be bankrupt?

• A) administrative expenses, wages claims not exceeding $2,000, government tax claims, debtholder and then equityholder claims.
• B) administrative expenses, wages claims not exceeding $2,000, government tax claims, equityholder and then debtholder claims.
• C) all wage claims, administrative expenses, debtholder claims, government tax claims and equityholder claims.
• D) all wage claims, administrative expenses, debtholder claims, equityholder claims and government tax claims.

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Definitions:

Social Responsibility

A company's obligation to act in ways that benefit society and the environment, beyond its financial interests.

Employee Insights

Valuable understandings or findings derived from analyzing employee feedback, behaviors, and data, aimed at improving workplace environment, productivity, and satisfaction.

Shareholder Demands

Expectations or requirements of a company's stockholders, typically regarding financial performance and corporate governance.

Organizational Culture

The shared values, beliefs, and practices that characterize an organization, influencing its social and psychological environment.