Another term sometimes applied to a common shareholder is a
A) fundamental or basic owner of the firm.
B) residual owner of the firm.
C) net owner of the firm.
D) reciprocal owner of the firm.

Question

Quizplus · Accepted Answer

As a common shareholder, one has the right to claim the residual assets of a company in case of liquidation. Therefore, a common shareholder is also referred to as a residual owner of the firm. A, C, and D do not accurately describe the ownership characteristics of a common shareholder.

Another Term Sometimes Applied to a Common Shareholder Is a