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The governing body of the business organization must execute a subordination resolution to be designed as a

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Final answer:

A subordination resolution is executed by a business's governing body to establish the ranking order of creditor claims in scenarios like debt restructuring.

Step-by-step explanation:

The governing body of a business organization must execute a subordination resolution in order to designate the relative priority of its debt instruments, typically in situations involving debt restructuring or issuing new debt. A subordination resolution is a legal document that establishes one creditor's claim as ranking behind that of another in the event of a bankruptcy or liquidation. This is often used when a company wants to borrow additional funds and the new lenders require that their claims to any assets are prioritized over existing debts.

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