What Is a Preferred Creditor?

A preferred creditor is a creditor that has a higher priority than other creditors in the event of a company bankruptcy. Preferred creditors typically include secured creditors, such as banks that have lent money to the company, and government agencies. They are typically paid before unsecured creditors, such as suppliers, in the event of a … Read more

Honorarium.

An honorarium is a payment made to someone for a service that is rendered, but for which no set fee has been established. The payment is usually made in recognition of the person’s expertise or for the time and effort expended on the project. Honoraria are generally considered to be taxable income. What is an … Read more