Bondholders' claims on the assets of the corporation rank ahead of stockholders' claims.

Name: Bondholders' claims on the assets of the corporation rank ahead of stockholders' claims.
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Question

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Bondholders have a higher priority claim on the assets of a corporation in case of bankruptcy or liquidation compared to stockholders. Stockholders have residual ownership after all debts and obligations, including bonds, have been satisfied.

Bondholders' Claims on the Assets of the Corporation Rank Ahead