Assuming a Company Is Unable to Pay All Its Debts,which

question 8

Multiple Choice

Assuming a company is unable to pay all its debts,which of the following statements is incorrect regarding the order in which creditors are paid?

• A)there is an order of repayment for preferential unsecured creditors;
• B)there is an order of repayment for ordinary unsecured creditors;
• C)all ordinary unsecured creditors rank equally;
• D)deferred creditors debts rank after all unsecured creditors.

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Torrance Test

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