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

Which of the following groups is paid first when a firm liquidates?
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Preference shareholders
  • B Debenture holders
  • C Ordinary shareholders
  • D Cumulative preference shareholders
Correct Answer: Option A
Explanation:
preference shareholders is a term used in venture capital contracts to specify which investors get paid first and how much they get paid in the event of a liquidation event such as the sale of the company.

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