With respect to a distribution to a bankrupt's creditors,which of the following is a distinguishing characteristic of a preferred creditor?
A) Each is paid a reasonable amount for supplies according to their order of priority.
B) Preferred creditors typically have a security interest in a particular asset.
C) Each is paid a reasonable amount for services according to their order of priority.
D) Preferred creditors are guaranteed a minimum $3000 recovery.
Correct Answer:
Verified
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