Which of the Following Financing Alternatives Has the Highest Preference

question 129

Multiple Choice

Which of the following financing alternatives has the highest preference of payment in a case where the company liquidates its assets?

• A)Common Stock.
• B)Preferred Stock.
• C)Bonds.

---

Definitions:

Minds

Refers to the intellectual or cognitive capabilities of individuals, including thoughts, perceptions, and consciousness.

Contract

A legally binding agreement between two or more parties that outlines obligations and provisions for each party.

Genuineness Of Assent

A legal principle stipulating that all parties involved in a contract must genuinely agree to the contract's terms for it to be valid and enforceable.

Duress

The use of force, threats, or coercion to compel someone to act in a manner they would not ordinarily choose.