What Is the Absolute Priority Rule of the Following Claims

question 3

Multiple Choice

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

• A)administrative expenses, wages claims, government tax claims, debtholder and then equityholder claims
• B)administrative expenses, wages claims, government tax claims, equityholder and then debtholder claims
• C)wage claims, administrative expenses, debtholder claims, government tax claims and equityholder claims
• D)wage claims, administrative expenses, debtholder claims, equityholder claims and government tax claims
• E)None of the above

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Definitions:

Software

A collection of data or instructions that tell a computer how to work. This is in contrast to hardware, which is the physical arrangement of components that the software runs on.

CD-R

Short for Compact Disc-Recordable, a type of digital storage medium that allows users to record data once and then prevent further alterations.

Record Data

Record data involves documenting and storing information or data collected from experiments, observations, or encounters for analysis and reference.

Permanent

Describes something that is intended to last or remain unchanged indefinitely.