The type of corporate ownership that has first claim on profits and assets is called a

Question

Quizplus · Accepted Answer

Preferred stockholders have first claim on profits and assets before ordinary shareholders. Bondholders and creditors are not considered owners of the corporation and do not have ownership rights. The board of directors is responsible for making decisions and overseeing the management of the corporation, but they do not have ownership rights.

The Type of Corporate Ownership That Has First Claim on Profits