Common shareholders have a residual claim on all income after creditors and preferred shareholders receive amounts contractually owed them.

Name: Common shareholders have a residual claim on all income after creditors and preferred shareholders receive amounts contractually owed them.
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Question

Quizplus · Accepted Answer

This statement is true. Common shareholders are the last to receive any earnings or profits after all other obligations have been met. They have a residual claim on the company's income.

Common Shareholders Have a Residual Claim on All Income After