Which of the following has the least senior claim on a venture's asset?
A)common stock
B)preferred stock
C)convertible preferred stock
D)convertible debt

Question

Quizplus · Accepted Answer

Common stock represents ownership in a company, but it has the least senior claim on a venture's assets. In case of liquidation or bankruptcy, common stockholders are the last to receive any distribution of the company's assets after all other liabilities and debts have been paid off. Preferred stockholders, convertible preferred stockholders, and convertible debt holders all have senior claims on a venture's assets over common stockholders.

Which of the Following Has the Least Senior Claim on a Venture's