Which of the following groups is paid first when a firm liquidates?

a

Preference shareholders

b

Debenture holders

c

Ordinary shareholders

d

Cumulative preference shareholders

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Explanation

Correct Option
a

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Discussions (24)

Oke Tope
12 years ago

No.it's debentire holder bcos debenture is just like adebt owed

emmatech
12 years ago

wen a firm liquidate d ist 2 settle is debenture holders cos d firm borrowed money frm dem

Myschool Kelly
10 years ago

Correction has been made, Thanks for your contributions.

Chuks612
9 years ago

This is totally wrong. When a firm liquates, the group which would be paid first are the debenture holders cuz they're owed money by the firm

Taobalinga
12 years ago

The ans is A. My scholars think that it's n't possible 4 debenture hodel to be liquidate cos is business undergoing to makes more profit why I choose A is that preference shareholder repay of dept after the event of liquidation and equally paid first b4 other. By Taobalinga55@yahoo.com

Snazzy boi
13 years ago

I go with B

olori scolas
11 years ago

d correct ans is preference shareholders,pals read melrose commerce for ss2 to confirm

Unknown_1
3 years ago

check ur textbooks d andswer is ordinary shareholders

cumulative preference holders are part owners of the business while debenture holders are like an outsiders that lend fund to the business so B is the correct answer

beatrice chinedu
11 years ago

d ans is A

sabastinegabriel
5 years ago

the word preferencial is coined from prefered ....and it is bcos they are settled bfore and other stake holders in the firm
that is why they are called preferential shareholders

It's sandi
12 years ago

Abegii! Tiz A jhur. check any c0mmerce txtbook

emidasodiq
13 years ago

yes dats is d ans

OkwuohaArinze
1 year ago

I didn't still understand

balogunemmanuel
10 years ago

The correct answer is 'A' as Preference shares consist of a company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a company bankruptcy, preferred stock shareholders have a right to be paid company assets first.

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