A Corporation Is Adjudged Bankrupt

question 21

Multiple Choice

A corporation is adjudged bankrupt. When do the shareholders receive any payment?

• A) After the trustee liquidates the assets and pays the administrative expenses, the shareholders are paid before the creditors.
• B) After the trustee liquidates the assets, the administrative expenses and secured creditors are paid, then the unsecured creditors, and, then the shareholders divide any remainder.
• C) After the trustee liquidates the assets, the shareholders are paid, next the administrative expenses, the secured creditors, and then the unsecured creditors divide any remainder.
• D) After the trustee liquidates the assets, the shareholders are paid first because they are the owners of the firm and have the principal stake.

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Definitions:

Sphygmomanometer

A device used to measure blood pressure, consisting of an inflatable cuff to restrict blood flow, and a mercury or aneroid manometer to measure the pressure.

Sphygm/o

A prefix related to the pulse, used in terms denoting something measured by the pulse.

Arterial Blood Pressure

The pressure within arteries, which is vital for circulating blood throughout the body.

Sphygmomanometer

A sphygmomanometer is a device used to measure blood pressure, typically involving a cuff that is placed around the arm.