BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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liquidated
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termination
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illusory
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fair dealing
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Detailed explanation-1: -Summary: Liquidated debt involves a debt with a known amount that is currently owed and not disputed by either the debtor or creditor. On the other hand, an unliquidated debt is unknown, disputed by at least one of the parties involved, and and is contingent upon a future event.
Detailed explanation-2: -The Bottom Line Different types of debt include secured and unsecured debt or revolving and installment.
Detailed explanation-3: -Debt can be classified into four main categories: secured, unsecured, revolving, or mortgaged.
Detailed explanation-4: -The debt that is considered lesser in priority is the subordinated debt. The higher priority debt is considered unsubordinated debt. The bankrupt company’s liquidated assets will first be used to pay the unsubordinated debt. Any cash in excess of the unsubordinated debt will then be allocated to the subordinated debt.