Economics · Corporate Finance
In the event of a company's liquidation, what priority claim do general debenture holders have compared to equity shareholders?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1They forfeit all claims to assets upon liquidation.
- 2They receive payment only after all equity shareholders are fully paid.
- 3They have an equal priority claim with equity shareholders.
- 4They have a preferential claim over equity shareholders as creditors.✓
Correct answer
They have a preferential claim over equity shareholders as creditors.
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