After dissolution of a corporation and liquidation of its assets,proceeds of the sale of assets are distributed in the following order:
A)preferred shareholders,common shareholders,creditors.
B)creditors,preferred shareholders,common shareholders.
C)common shareholders,creditors,preferred shareholders.
D)preferred shareholders,creditors,common shareholders.

Question

Quizplus · Accepted Answer

Winding up is the orderly collection and disposal of the corporation's assets and the distribution of the proceeds of the sale of assets.From these proceeds,the claims of creditors will be paid first.Next,the liquidation preferences of preferred shareholders will be paid.Then,common shareholders receive any proceeds that remain.

After Dissolution of a Corporation and Liquidation of Its Assets,proceeds