Another question from Gregory Stock’s book is this:
If your business were going bankrupt and most of the company’s debts would never be paid, would you use the company’s few remaining assets to reimburse customers for unfilled orders, to pay employees their back wages, or to pay suppliers for the goods they had given you on credit? Assume you can do only one.
Really tough question–but tough questions are the best!
I would use the company’s few remaining assets to pay employees their back wages.