Which feature of common stock ownership allows a stockholder to share in the company's earnings after the creditors are paid?

Question

Quizplus · Accepted Answer

Claim on income is the feature of common stock ownership that allows a stockholder to share in the company's earnings after the creditors are paid. Limited liability means that the stockholder's liability is limited to their investment in the company and they will not be personally liable for the company's debts. Claims on assets refer to the stockholder's right to assets in case of liquidation. Voting rights allow stockholders to participate in the decision-making process of the company.

Which Feature of Common Stock Ownership Allows a Stockholder to Share