What does "priority" mean?
A)Higher priority confers preferential payout before lower priority claimants.
B)Refers to the amount of payment that will be made upon bankruptcy.
C)Lower priority confers preferential payout before higher priority claimants.
D)Debtors will be paid after the equity holders if there is a bankruptcy.

Question

Quizplus · Accepted Answer

Priority, in financial and legal contexts, refers to the order in which certain debts or claims are paid out in situations like bankruptcy. Higher priority debts are paid before those of lower priority, ensuring that the most important or secured debts are settled first.

What Does "Priority" Mean