Which one of the following will generally have the highest priority when assets are distributed in a bankruptcy proceeding?
A)consumer claim
B)dividend payment to preferred shareholder
C)company contribution to the employees' retirement account
D)payment to an unsecured creditor
E)payment of employee wages

Question

Quizplus · Accepted Answer

Payment of employee wages typically has a higher priority in bankruptcy proceedings compared to other claims like unsecured creditors, dividend payments, or contributions to retirement accounts. This is because laws often protect employees as critical stakeholders in a company, ensuring they are paid for their work even in the event of bankruptcy.

Which One of the Following Will Generally Have the Highest