Which of the statements below is FALSE?
A)The profits for common stock owners come before payment to employees,suppliers,government,and creditors.
B)Shareholders elect the board of directors,which ultimately selects the management team that runs the day-to-day operations of the company.
C)Stock is a major financing source for public companies.
D)Common stock's ownership claim on the assets and cash flow of a company is often referred to as a residual claim.

Question

Quizplus · Accepted Answer

This statement is false. The profits for common stock owners come after payment to employees, suppliers, government, and creditors. Shareholders are the last in line to receive payment in the event of liquidation or bankruptcy.

Which of the Statements Below Is FALSE