In the event a corporation is dissolved,common stockholders receive preference over preferred stockholders in the distribution of assets.

Name: In the event a corporation is dissolved,common stockholders receive preference over preferred stockholders in the distribution of assets.
Brand: Quizplus
Rating: 4.9 (62 reviews)

Question

Quizplus · Accepted Answer

Preferred stockholders have a higher claim on assets in the event of a corporation's dissolution, as they have priority in receiving dividends and in receiving assets before common stockholders.

In the Event a Corporation Is Dissolved,common Stockholders Receive Preference