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What Is the Absolute Priority Rule of the Following Claims

Question 4

Multiple Choice

What is the absolute priority rule of the following claims once a corporation is determined to be bankrupt?


A) Administrative expenses, wages claims, government tax claims, debtholder and then equityholder claims
B) Administrative expenses, wages claims, government tax claims, equityholder and then debtholder claims
C) Wage claims, administrative expenses, debtholder claims, government tax claims and equityholder claims
D) Wage claims, administrative expenses, debtholder claims, equityholder claims and government tax claims
E) None of these.

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