Question

According to priority, which of the following claimants is the last to be paid after a corporation's assets have been liquidated?

A) creditors
B) common stockholders
C) preferred shareholders
D) bond holders

Answer 1

The last claimants to be paid after a corporation's assets have been liquidated are the common stockholders. They have the last priority and are often left with little or no proceeds after all other claimants are paid.

Step-by-step explanation:

The last claimants to be paid after a corporation's assets have been liquidated are the common stockholders.

Priority in the payment of claimants in a corporation's liquidation process is as follows:

1. Bond holders: They have the highest priority and are usually paid first from the proceeds of the liquidation.
2. Preferred shareholders: They have the next priority after bond holders and will be paid from the remaining assets.
3. Creditors: They have the next priority after preferred shareholders and will be paid from the remaining assets.
4. Common stockholders: They have the last priority and are often left with little or no proceeds after all other claimants are paid.