The first and last priorities for receiving funds in a bankruptcy are:
A)administrative expenses of the bankruptcy proceedings; common stockholders.
B)unpaid employees, unsecured creditors.
C)secured creditors; common stockholders
D)customers; preferred stockholders.

Question

Quizplus · Accepted Answer

Secured creditors have the first priority because they have collateral backing their claims. Common stockholders are last because they are residual claimants, receiving funds only after all other obligations are satisfied.

The First and Last Priorities for Receiving Funds in a Bankruptcy