Formal liquidation is recommended when reorganization is not feasible and out-of-court settlements cannot be reached. Which is the order of priority for claims against the firm?
A) secured creditors, taxes, wages, lawyer's fees, unsecured creditors
B) secured creditors, lawyer's fees, source deductions, wages, unsecured creditors
C) lawyer's fees, wages, source deductions, secured creditors, unsecured creditors
D) source deductions, lawyer's fees, secured creditors, wages, unsecured creditors
Correct Answer:
Verified
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