Which one of the following will generally receive the highest priority in a bankruptcy liquidation, assuming the absolute priority rule is followed?
A)Claims by unsecured creditors
B)Employee wages
C)Government tax claims
D)Contributions to employee retirement plans
E)Bankruptcy administrative expenses

Question

Quizplus · Accepted Answer

Bankruptcy administrative expenses are typically given the highest priority in a bankruptcy liquidation under the absolute priority rule, as they are necessary for the process of administering the bankruptcy estate.

Which One of the Following Will Generally Receive the Highest