The rights or claims to the assets of a business may be subdivided into rights of creditors and rights of owners.

Name: The rights or claims to the assets of a business may be subdivided into rights of creditors and rights of owners.
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Question

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This statement is true. Creditors have a right to be paid back money they have loaned to a business, while owners have a claim to the residual profits and assets after creditors have been paid.

The Rights or Claims to the Assets of a Business