What Is the Correct Priority of the Following Claims, Once

question 8

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 equity holder claims.
• B) Administrative expenses, wages claims not exceeding $2,000, government tax claims, equity holder and then debtholder claims.
• C) All wage claims, administrative expenses, debtholder claims, government tax claims and equity holder claims.
• D) All wage claims, administrative expenses, debtholder claims, equity holder claims and government tax claims.

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Definitions:

Economic Institutions

Entities or organizations in a society that create, manage, and enforce the rules and policies governing economic activities and transactions.

Motivational Carrots

Incentives or rewards offered to encourage desired behaviors or performances from individuals or groups.

Normative Approach

A perspective in ethics or psychology that focuses on establishing norms or standards of behavior.

Locus Of Control

A psychological concept that refers to individuals' belief about the extent to which the outcomes of their actions are under their own control (internal locus) or influenced by external forces (external locus).