Which of the following is an example of an ordinary unsecured creditor?

Question

Quizplus · Accepted Answer

Trade creditors are ordinary unsecured creditors, who are typically suppliers who have extended credit to the company for goods or services. The other options include liquidator's remuneration, which is a priority payment to be made in case the company is wound up, and workers' injury compensation claims which are also considered as priority payments. Retrenchment payments payable to employees of the company other than a director or a relative of a director are considered as preferential debts, which rank higher than ordinary unsecured debts.

Which of the Following Is an Example of an Ordinary