Ask Question
BusinessBusiness
7 June, 13:54

Common stockholders have a residual claim to income, in other words they are last in line.

A) True

B) False

+4
Answers (1)
  1. 7 June, 16:04
    0
    Answer: True

    Explanation: In simple words, common stock holders refers to the individuals who have the ownership rights of the company in form of common stocks or generally termed as equity shares.

    These stockholders gets dividend in return of their investment. They usually receive the highest dividend among all of them but their rate is not fixed as preference shareholders and debt holders.

    These shareholders are considered as the owners of the company due to their voting rights and thus have last preference in event of liquidation and receives the residual left after paying for the creditors such as debt holders and preference holders.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Common stockholders have a residual claim to income, in other words they are last in line. A) True B) False ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Medical Payments coverage provides protection for all of the following except which one? A. The insured B. The insured's family C. Passengers in the insured's vehicle D. Occupants of a vehicle that is struck by the insured's vehicle
Answers (1)
As you consider the factors of production, which of the following did management theorist Peter Drucker believe to be one of the most important contributing factors to increasing our nation's wealth? a. Landb. Laborc. Knowledged. Capital
Answers (1)
Consider a construction loan made to ABC Inc. The loan amount is $6 million, which is drawn evenly (i. e., a $1,000,000 monthly draw) for the next six months. Assume that each disbursement occurs at the end of the month.
Answers (1)
APB Opinion No. 28, Interim Financial Reporting, concluded that interim financial reporting should be viewed primarily in which of the following ways? A. As useful only if activity is spread evenly throughout the year. B.
Answers (1)
If the price of buying a foreign car in the U. S. rises as the passage suggests, which of these might balance the trade deficit? A) The price of foreign cars becomes more attractive to buyers.
Answers (2)
New Questions in Business
Most of the time it is quite difficult to separate the three functions of money. Money performs its three functions at all times, but sometimes we can stress one in particular.
Answers (1)
The APB partnership agreement specifies that partnership net income be allocated as follows: Partner A Partner P Partner B Salary allowance 30000 10000 40000 Interest on average capital balance 10% 10% 10% Remainder 40% 40% 20% Average capital
Answers (1)
The supply curve of reserves in an economy is horizontal when: A) the federal funds rate is greater than the seasonal credit discount rate. B) the federal funds rate is less than the secondary credit discount rate.
Answers (1)
Colton took out a 3 year loan for $2075 at a computer store to be paid back with monthly payments at a 10.7% APR. If the loan offers no payments for the first 11 months, how many payments will Colton be required to make?
Answers (1)
An externality is a. a benefit realized by the purchaser of a good or service. b. a cost paid for by the producer of a good or service. c. a benefit or cost experienced by someone who is not a producer or consumer of a good or service. d.
Answers (1)
Home » Business » Common stockholders have a residual claim to income, in other words they are last in line. A) True B) False
Sign Up Forgot Password?