Upon the dissolution of partnership business, the party to be settled first out of the proceeds realized is
- unsecured creditors
- partner's loan and advances
-
secured creditors
- partners' capital
The correct answer is: C
Explanation
A secured creditor is generally a bank or other asset-based lender that holds a fixed or floating charge over a business asset or assets. When a business becomes insolvent, sale of the specific asset over which security is held provides repayment for this category of creditor.