Why do shareholders bear most of the risk of running a firm?
A) They only have a residual claim on the firm's cash flows.
B) They receive a salary from the company.
C) They are guaranteed a fixed payout each quarter.
D) Shares can be taken away at any time without notice.
Correct Answer:
Verified
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A)
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A) Involves managing the firm's
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A) Focuses primarily on easily-insured
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