If a corporation is dissolved voluntarily, the creditors must be paid before the shareholders out of the assets of the firm.

Name: If a corporation is dissolved voluntarily, the creditors must be paid before the shareholders out of the assets of the firm.
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According to corporate law, creditors have priority over shareholders in the distribution of assets during a voluntary dissolution of a corporation. This means that creditors must be paid first before any payment is made to shareholders.

If a Corporation Is Dissolved Voluntarily, the Creditors Must Be