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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Definitions:

S.A.

Also known as the Sturmabteilung, the original paramilitary wing of the Nazi Party, known for their significant role in Adolf Hitler's rise to power.

Lebensraum

A concept from German geopolitics, literally meaning "living space," used to justify expansionist policies by claiming the necessity of acquiring more territory for a nation's growth.

Foreign Policy

A government's strategy in dealing with other nations, involving diplomacy, trade, and military action to achieve national objectives.

Benito Mussolini

An Italian political leader who founded Fascism and ruled Italy as a dictator from 1922 until his downfall in 1943.