Except for the owners,which group has the lowest claim in a bankruptcy situation?
A) Commercial banks
B) Investors
C) Trade debt
D) Leasing companies

Question

Quizplus · Accepted Answer

Trade debt, also known as unsecured debt, has the lowest priority in a bankruptcy situation. This means that if there are limited funds to distribute to creditors, trade debt holders will receive the least amount of compensation or may not receive anything at all. Commercial banks and leasing companies typically have secured debt, meaning they have collateral to recover in case of default, and investors may also have priority claims based on the terms of their investment contracts.

Except for the Owners,which Group Has the Lowest Claim in a Bankruptcy