The residual interest in a corporation belongs to the
A) management.
B) creditors.
C) common shareholders.
D) preferred shareholders.

Question

Quizplus · Accepted Answer

Residual interest refers to the portion of the company's assets that are left over after all liabilities and obligations have been paid off. This residual interest ultimately belongs to the common shareholders, as they are the last in line to receive payment in the event of liquidation or bankruptcy. Management, creditors, and preferred shareholders all have specific claims to the company's assets that take priority over the common shareholders.

The Residual Interest in a Corporation Belongs to the