(Solved):In a firm’s “waterfall”, who are paid after government? A. Bondholder. B. Employee. C….

 

Question

In a firm’s “waterfall”, who are paid after government?

A. Bondholder.

B. Employee.

C. Supplier.

D. Preferred shareholder.

 

EXPERT ANSWER

The correct answer is A- Bondholder. Through waterfall payments loans that have highest principal are prioritized due to their expensive nature. Loans can be paid one at a time or systematically by use of waterfall payments because highest principal and interest is a characteristic of higher-tiered creditors. Secured creditors are prioritized over unsecured creditors. Creditors

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