The term residual claim refers to a shareholder's right to
A)receive dividends.
B)share in assets upon liquidation.
C)acquire additional shares when offered.
D)vote.

Question

Quizplus · Accepted Answer

The residual claim is the shareholder's right to receive a share of the assets remaining after all debts and liabilities have been paid in the case of liquidation. This means that shareholders would receive assets proportionate to their ownership percentage before any remaining funds are distributed to creditors. The residual claim does not relate to dividends, acquiring additional shares, or voting rights.

The Term Residual Claim Refers to a Shareholder's Right to