An online food delivery service goes out of business owing to stiff competition. The company has long overdue taxes because of which its stockholders do not receive the proceeds of the company after its dissolution. In this case, the company is not able to fulfill the _____ of its stockholders.

Question

Quizplus · Accepted Answer

Stockholders have a right to a residual claim on assets, meaning they are entitled to the remaining assets after all debts and obligations are settled. In this case, overdue taxes prevent this from happening.

An Online Food Delivery Service Goes Out of Business Owing