- 1 Marks
Question
The creditors given priority payment during a liquidation process are known as …………………. creditors.
Answer
Secured creditors
Explanation: Secured creditors are given priority in a liquidation process as they have specific legal rights or collateral backing their claims, making them first in line for payment.
- Tags: Creditors, Insolvency, Legal Liability, Liquidation, Priority Payment
- Level: Level 3
- Topic: Auditor’s Legal Liability
- Series: NOV 2012
- Uploader: Dotse