Liquidation of a corporation:

A) is carried out by a court-appointed receiver in any liquidation.
B) is carried out by the board of directors, serving as trustees, in a voluntary liquidation.
C) results in paying first stockholders with a liquidation preference, then outside creditors, then expenses of liquidation.
D) is set up to protect stockholders and the board of directors, but not creditors.

In a voluntary liquidation, the board of directors can act as trustees to oversee the process. Court-appointed receivers are typically involved in involuntary liquidations, such as those initiated by creditors. The correct order of payment in a liquidation prioritizes outside creditors and liquidation expenses before any distributions to stockholders, including those with a liquidation preference. Liquidation primarily aims to ensure that creditors' claims are settled before any returns to stockholders, not to protect the board of directors or stockholders at the expense of creditors.