Holders of common stock receive certain benefits,such as a residual claim,which is the:
A)right of stockholders to be paid back for their investment before anyone else if the company ceases operation.
B)right to oversee management of the company.
C)right to share in any remaining assets after creditors have been paid off,should the company cease operations.
D)continuing right to receive a share of the company's profits in the form of dividends.

Question

Quizplus · Accepted Answer

Residual claim means that,if the company ceases operations,stockholders share in any assets remaining after creditors have been paid.

Holders of Common Stock Receive Certain Benefits,such as a Residual