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Which of the following would be paid last by a company which had been placedin insolvent liquidation?
Suggested Answer: A, D, F
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34 comments · newest first
ER
Eric
11 months ago
Totally agree with B, shareholders are at the bottom of the list!
ME
Merlyn
11 months ago
Wait, are unpaid wages really lower priority than directors' fees?
CA
Casandra
11 months ago
No way, it’s C for sure, directors' fees are usually last.
KE
Kenneth
12 months ago
I think it's actually A, unsecured debentures are tricky.
MI
Micaela
12 months ago
Definitely B, shareholders get paid last.
GL
Glendora
1 year ago
I recall that directors' fees can sometimes be tricky, but I think they get paid before shareholders, so maybe it’s B after all.
KI
Kiera
1 year ago
I practiced a similar question where unsecured debts were paid last, so I’m leaning towards A, but I could be wrong.
AH
Ahmad
1 year ago
I'm not entirely sure, but I feel like unpaid wages might be prioritized over other debts, so it could be A or C.
BR
Brandon
1 year ago
I think I remember that shareholders are usually at the bottom of the priority list in liquidation, so maybe it's B?
GL
Gladys
1 year ago
Ah, this is a tricky one. I remember learning about the order of payments in insolvency, but I'm drawing a blank right now. I'll have to make an educated guess and hope for the best.
SO
Sol
1 year ago
Hmm, I'm not totally sure about this one. I know that secured creditors get paid first, but I'm a bit fuzzy on the order after that. I'll need to review my notes to be confident.
LA
Lauran
1 year ago
This question seems straightforward, I think the answer is B - share capital invested by the shareholders would be paid last in an insolvent liquidation.
LA
Lavera
1 year ago
Okay, let me think this through. In an insolvent liquidation, the order of payment is typically: 1) secured creditors, 2) preferential creditors like employees, 3) unsecured creditors, and 4) shareholders. So I believe the answer is B.
FL
Florinda
1 year ago
Unpaid employees' wages? What, are they supposed to work for free while the company goes under? That's like asking a starving person to share their last crumb.
DA
Darrin
1 year ago
C) Fees owed to the directors
ZI
Zita
1 year ago
B) Share capital invested by the shareholders.
AR
Arlyne
1 year ago
A) Outstanding loan capital and interest due to the holder of an unsecured debenture.
AM
Ammie
1 year ago
C) Fees owed to the directors? Hah, of course the directors would try to get their cut before the employees. Gotta love corporate greed!
DE
Deane
1 year ago
D) Unpaid employees' wages
AL
Alease
1 year ago
B) Share capital invested by the shareholders.
FR
Franklyn
1 year ago
A) Outstanding loan capital and interest due to the holder of an unsecured debenture.
LA
Lang
2 years ago
A) Outstanding loan capital and interest due to the holder of an unsecured debenture? Sounds like a fancy way of saying 'the bank gets paid first.' No surprise there.
JE
Jerry
1 year ago
C) Fees owed to the directors.
LO
Louann
1 year ago
B) Unpaid employees' wages.
BE
Berry
1 year ago
A) Share capital invested by the shareholders.
YO
Youlanda
2 years ago
B) Share capital invested by the shareholders? That's just crazy, they should be the last ones to get paid! What were the exam writers thinking?
CR
Cristal
1 year ago
B) Share capital invested by the shareholders
TA
Tamesha
1 year ago
C) Fees owed to the directors
JI
Jina
1 year ago
D) Unpaid employees' wages
MO
Mozell
1 year ago
A) Outstanding loan capital and interest due to the holder of an unsecured debenture.
DA
Darnell
2 years ago
D) Unpaid employees' wages definitely seems like the correct answer. I can't imagine a company not paying its workers first before anything else.
CR
Cristy
2 years ago
But what about outstanding loan capital and interest due to the holder of an unsecured debenture? Shouldn't that be paid first?
CH
Charlesetta
2 years ago
I agree with Christa, employees should be paid first before other creditors.
CH
Christa
2 years ago
I think unpaid employees' wages would be paid last.