The First and Last Priorities for Receiving Funds in a Bankruptcy

question 173

Multiple Choice

The first and last priorities for receiving funds in a bankruptcy are:

• A)administrative expenses of the bankruptcy proceedings; common stockholders.
• B)unpaid employees, unsecured creditors.
• C)secured creditors; common stockholders
• D)customers; preferred stockholders.

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Definitions:

Insurance Company

An insurance company is a financial institution that provides a range of insurance products to protect individuals and businesses against risk.

Homeowners

Individuals or entities who possess ownership rights to a residential property.

Insurance Company

A financial institution that provides a range of insurance products to protect individuals and businesses against risk in exchange for premium payments.

Claims

Assertions or demands for something due or believed to be due, often used in the context of insurance or legal cases.