Common shares:
A) Make shareholders liable for acts of the corporation because they share in ownership.
B) Are usually redeemable.
C) Always represent total contributed capital.
D) Allow shareholders to bind the corporation to contracts because they share in ownership.
E) Represent residual equity in a corporation.

Question

Quizplus · Accepted Answer

Common shares represent residual equity in a corporation, meaning they are the last to claim on assets and earnings after debts and other obligations are satisfied.

Common Shares