The legitimate claims of a business's creditors take precedence over the claims of the business owner or owners.

Question

Quizplus · Accepted Answer

This is true according to the legal principles of corporate and business law. Creditors have a legal right to payment from a business, and this right is considered to be higher in priority than the rights of the business owner to their assets or profits. This means that if a business is unable to pay its debts, creditors will generally have first claim to any available funds or assets.

The Legitimate Claims of a Business's Creditors Take Precedence Over