Put the following in order of their claim on assets of a firm,starting with the LAST to have a claim:
A.Subordinated debentures
B.Debentures (unsubordinated)
C.Common Stock
D.Preferred stock

A) C, B, A, D
B) C, D, A, B
C) B, A, C, D
D) D, C, B, A
E) D, C, A, B

Question

Put the following in order of their claim on assets of a firm,starting with the LAST to have a claim:
A.Subordinated debentures
B.Debentures (unsubordinated)
C.Common Stock
D.Preferred stock

A) C, B, A, D
B) C, D, A, B
C) B, A, C, D
D) D, C, B, A
E) D, C, A, B

Quizplus · Accepted Answer

In the event of liquidation, common stockholders are the last to have a claim on assets, followed by preferred stockholders. Subordinated debentures are next, as they are lower in priority than unsubordinated debentures, which are the first among these options to have a claim on assets.

Put the Following in Order of Their Claim on Assets