___________is a stipulation in a long-term debt agreement that subsequent or less important creditors agree to wait until all claims of the ____________ are satisfied before having their claims satisfied.

Question

Quizplus · Accepted Answer

The stipulation described in the question is known as subordination, where subsequent or less important creditors agree to wait until all claims of the senior debt are satisfied before having their claims satisfied. Option C correctly identifies subordination and senior debt as the relevant terms. Option A does not accurately describe a financial term, and options B and D do not accurately reflect the concept described in the question.

___________Is a Stipulation in a Long-Term Debt Agreement That Subsequent