If a company borrows funds and subsequently ceases operations,
A) shareholders have immediate claim on the assets of the corporation.
B) shareholders have no claim on the assets of the corporation.
C) shareholders have to pay all debt first before claiming the assets of the corporation.
D) shareholders have only a residual claim on the assets of the corporation.

Question

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The Answer of If a company borrows funds and subsequently ceases operations,
A) shareholders have immediate claim on the assets of the corporation.
B) shareholders have no claim on the assets of the corporation.
C) shareholders have to pay all debt first before claiming the assets of the corporation.
D) shareholders have only a residual claim on the assets of the corporation.

If a Company Borrows Funds and Subsequently Ceases Operations