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Which of the Following Statements Is False

Question 2

Multiple Choice

Which of the following statements is false?


A) Bondholders would be paid before stockholders in a liquidation.
B) Dividends are not required to be paid to stockholders.
C) Bondholders are owners while stockholders are creditors.
D) Bondholders receive a fixed interest while stockholders are paid only if earnings are sufficient.

Correct Answer:

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