Suppose Sears Roebuck & Company dissolved.After creditors are paid,what is the name of the next group to have claim on profits and assets?
A) Preferred shareholders.
B) Common stockholders.
C) Incorporators.
D) Corporate officers.

Question

​Suppose Sears Roebuck & Company dissolved.After creditors are paid,what is the name of the next group to have claim on profits and assets?
A) ​Preferred shareholders.
B) ​Common stockholders.
C) ​Incorporators.
D) ​Corporate officers.

Quizplus · Accepted Answer

Preferred shareholders have a higher claim on assets and earnings than common stockholders after creditors are paid in the event of dissolution.

​Suppose Sears Roebuck & Company Dissolved

Suppose Sears Roebuck & Company Dissolved