In a liquidation of a firm due to bankruptcy, whose claims are considered last?
A) the government
B) preferred stockholders
C) common stockholders
D) debt holders

Question

Quizplus · Accepted Answer

In a liquidation of a firm due to bankruptcy, common stockholders are considered last to receive any proceeds after all other claims have been satisfied. The government, preferred stockholders, and debt holders are all considered before common stockholders.

In a Liquidation of a Firm Due to Bankruptcy, Whose