____ is (are) referred to as a residual form of ownership in a corporation.
A) Common stock
B) Preferred stock
C) Bonds
D) Dividends

Question

Quizplus · Accepted Answer

Common stock is referred to as a residual form of ownership in a corporation because holders of common stock have the right to residual earnings and assets of the company after all other obligations, including preferred dividends, have been paid. Preferred stock has priority over common stock when it comes to dividends and liquidation proceeds, and bonds represent debt obligations of the company rather than ownership. Dividends are a distribution of earnings to shareholders, not a form of ownership.

____ Is (Are) Referred to as a Residual Form of Ownership