The rule that the assets of a company are distributed to creditors, in order of seniority, in the case of liquidation is best described as the:

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The absolute priority rule dictates that in the event of a liquidation, all senior claims on the assets of a company must be fully satisfied before any junior claimants receive any payment. This rule is fundamental in bankruptcy proceedings, ensuring an orderly payment process according to the hierarchy of claims.

The Rule That the Assets of a Company Are Distributed