JAMB Commerce 2017 Objective — Question 9

Question 9 of 40 from the Joint Admissions and Matriculation Board (JAMB) Commerce 2017 Objective paper, with the correct answer and a full explanation.

In the event of the liquidation of a company, the first to be settled are

A. A. members of the board
B. B. ordinary shareholders
C. C. debenture holdersCorrect
D. D. preference shareholders

Explanation

Debenture holders, as creditors, are settled first (ahead of shareholders) when a company is liquidated.

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