CURRENT AFFAIRS

Detailed explanation-1: -They are the first ones to receive the debt. For instance, the bank is entitled to any property assets when a company takes a loan for an industrial warehouse. If the company goes under Liquidation, the liquidator has to make sure that the bank receives the assets.

Detailed explanation-2: -In summary, the priority of payments in a company liquidation is as follows: secured creditors, preferential creditors, unsecured creditors, and finally, shareholders.

Detailed explanation-3: -If a company goes into liquidation, all of its assets are distributed to its creditors based on a pre-determined priority order. Secured creditors are first in line, as their claims over assets are often secured by collateral and a contract.

Detailed explanation-4: -In the United States, the highest priority claim in liquidation goes to legal and administrative fees arising from the liquidation proceedings. Next are claims for back wages and salaries. The tax collectors comes next, claiming federal, state and local taxes due.

Detailed explanation-5: -Answer: Unsecured creditors rank below secured creditors when it comes to receiving payment following the liquidation of a company. Unsecured creditors do not have the benefit of having a claim over a particular asset, and can include suppliers, contractors, landlords and customers. Q. 12.