If absolute priority rules are enforced in a Chapter 7 bankruptcy,which of the following is least likely to receive payment?

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Owners of common stock are the last in priority to receive payment in a Chapter 7 bankruptcy due to the absolute priority rule. The rule states that creditors must be paid in full before shareholders receive any payment. Therefore, it is least likely that owners of common stock would receive payment. Local, state, or federal governments owed taxes, banks holding loans secured by collateral, and owners of bonds would have a higher priority for payment.

If Absolute Priority Rules Are Enforced in a Chapter 7