The ________ are sometimes referred to as the residual owners of the corporation.
A) preferred stockholders
B) unsecured creditors
C) common stockholders
D) secured creditors

Question

Quizplus · Accepted Answer

Common stockholders are the residual owners of a corporation. This means that they are entitled to the residual income and assets of the company after all other claims have been satisfied. Preferred stockholders, on the other hand, have a fixed dividend rate and are usually not considered the residual owners. Unsecured and secured creditors have priority claims over stockholders in the event of bankruptcy or liquidation.

The ________ Are Sometimes Referred to as the Residual Owners