Common stockholders' claim on assets is considered after which of the following:
A)Board of Directors' pay
B)Preferred Stockholders
C)Both a and b
D)Neither a nor b

Question

Quizplus · Accepted Answer

Preferred stockholders have a higher claim on assets compared to common stockholders, hence their claims are considered before common stockholders. Board of Directors' pay is not directly related to the claim on assets of the company.

Common Stockholders' Claim on Assets Is Considered After Which of the Following