Shareholders of a business enterprise are said to be the residual owners.The term residual owner means that shareholders
A)are entitled to a dividend every year in which the business earns a profit.
B)have the rights to specific assets of the business.
C)bear the ultimate risks and uncertainties and receive the benefits of enterprise ownership.
D)can negotiate individual contracts on behalf of the enterprise.

Question

Quizplus · Accepted Answer

Shareholders are considered residual owners because they are entitled to the remaining profits and assets of a company after all obligations have been met. They bear the ultimate risks and uncertainties of the business and benefit from its success.

Shareholders of a Business Enterprise Are Said to Be the Residual