Common shareholders have a claim on the company's assets:
A) at any time, equal to the value of their shares.
B) only after the claims of debtholders and preferred shareholders have been satisfied.
C) after the claims of the preferred shareholders have been satisfied, but before the debt holders.
D) never. Common shareholders have no claim on the company's assets.

Question

03-03-2020
Business

contestada

Common shareholders have a claim on the company's assets:
A) at any time, equal to the value of their shares.
B) only after the claims of debtholders and preferred shareholders have been satisfied.
C) after the claims of the preferred shareholders have been satisfied, but before the debt holders.
D) never. Common shareholders have no claim on the company's assets.

Respuesta :

Otras preguntas

the temperature on Sunday was -15 Celsius . the temperature on monday was 12 degrees less than the temperature on sunday. what was the temperautre on monday?

Which technological advancement helped unify the Roman Empire

Given f(x) = 10 - 16/x, find all c in the interval [2,8] that satisfy the mean value theorem

Was the post war britain 1940 a revolutionary government or merely reformist ?

What three words are at the start of every scale

how to integrate ∫㏑x/χ from 1 to e

There was a time when there was a hunger for english knowledge.

how might a substitution mutation affect a person's traits A.by stopping DNA from replicating B.by prevention ribosomes from synthesizing proteins C.by changing

Rosa used a pattern using the rule "Subtract 7". The first two numbers in her pattern were 83 And 76. Which number below is apart of rosas pattern? A. 41 B. 49

abdulmajeedabiodunac abdulmajeedabiodunac · Answer 1 · 2020-03-03T04:53:07+01:00

Answer:

The correct option is B,common shareholders have a claim on the company's assets only after the claims of debt-holders and preferred shareholders have been satisfied.

Explanation:

The debt-holders have priority over preferred shareholders and common shareholders in laying claims to the assets of the company.This accounts for the reason why payment of interest on their loans is accorded highest priority.

The preferred shareholders have priority on company assets over the common shareholders in the event of company going bankrupt.

The common shareholders are at the bottom-line in terms of claims t assets upon liquidation,however they share in excess gains from liquidation as they are the original owners of the company entitled to higher risks and rewards.