The claims of the equityholders on a firm's assets have priority over the claims of creditors because the equityholders are the owners of the firm.

Name: The claims of the equityholders on a firm's assets have priority over the claims of creditors because the equityholders are the owners of the firm.
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Creditors have priority over equityholders when it comes to claims on a firm's assets, because debts and obligations are legally required to be paid before equityholders can claim any residual assets.

The Claims of the Equityholders on a Firm's Assets Have