Because common shareholders are entitled to the profits that remain after all of a corporation's other obligations have been met, common shareholders are known as
A) residual owners.
B) temporary owners.
C) debt owners.
D) owners of last resort.

Question

Quizplus · Accepted Answer

Common shareholders are referred to as residual owners because they have a claim on the assets and earnings of a corporation after all debts and other obligations have been paid.

Because Common Shareholders Are Entitled to the Profits That Remain