In Relation to the Order of Priority of Payment of Debts

question 21

Multiple Choice

In relation to the order of priority of payment of debts upon liquidation, which statement is correct?

• A) Ordinary unsecured creditors are paid before preferential unsecured creditors.
• B) Preferential unsecured creditors are paid before deferred creditors.
• C) Deferred creditors are paid before ordinary unsecured creditors.
• D) Deferred creditors are paid before secured creditors.

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Definitions:

Talented Employees

Individuals who possess a high level of skill, creativity, or intelligence, making them particularly valuable to their employers.

Old Age

The latter part of life, typically regarded as the years after retirement, when a person is considered to be advanced in years or elderly.

Survivors

Refers to the employees who remain in an organization following layoffs or downsizing, often facing increased workloads and psychological stress.

Disability

Under the Americans with Disabilities Act, a physical or mental impairment that substantially limits one or more major life activities, a record of having such an impairment, or being regarded as having such an impairment.