Which creditors have their claims subordinated in the event of liquidation?

In the context of liquidation, general partners have their claims subordinated because they hold a more risky and less secure position in a business structure compared to other types of creditors. In a partnership, general partners are typically responsible for the debts and obligations of the business, and they can be personally liable for more than just their investment in the partnership. Their potential losses extend beyond their contributions, making their claims subordinate to those of secured creditors and possibly general creditors.

Secured creditors, who have specific assets pledged as collateral for their loans, have first claim on these assets in the event of liquidation. General creditors, although their claims are not secured by collateral, still rank above general partners when it comes to being paid from any liquidated assets. Limited partners, on the other hand, usually invest capital without taking part in management and have limited liability, which places their claims in a different category.

Therefore, the correct answer highlights the subordinate status of general partners in the hierarchy of claims during liquidation, affirming the greater financial risk they undertake compared to other creditor groups.