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What Is the Correct Priority of the Following Claims, Once

Question 8

Multiple Choice

What is the correct priority of the following claims, once a corporation is determined to be bankrupt?


A) Administrative expenses, wages claims not exceeding $2,000, government tax claims, debtholder and then equity holder claims.
B) Administrative expenses, wages claims not exceeding $2,000, government tax claims, equity holder and then debtholder claims.
C) All wage claims, administrative expenses, debtholder claims, government tax claims and equity holder claims.
D) All wage claims, administrative expenses, debtholder claims, equity holder claims and government tax claims.

Correct Answer:

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