The following groups are some of the claimants to a firm's income stream:
I. Shareholders; II) Bondholders;
III. Employees;
IV. Management and V) Government
A) I and II only
B) I, II, and III only
C) I, II, III and IV only
D) I, II, III, IV and V

Question

Quizplus · Accepted Answer

All five groups listed have a claim on a firm's income stream. Shareholders own a portion of the company and receive dividends and/or capital gains, while bondholders are owed interest and repayment of principal. Employees are paid wages and salaries, while management receives salaries and bonuses. Finally, the government may require the firm to pay taxes on its income. Therefore, option D - I, II, III, IV and V - is the best choice as it includes all five claimants.

The Following Groups Are Some of the Claimants to a Firm's