Which ONE of the following statements is true about ordinary shares?
A) Ordinary Shares are considered to have a fixed maturity.
B) Owners of ordinary shares are guaranteed dividend payment by the company.
C) Owners of ordinary shares have the lowest-priority claim on the company's assets in the event of insolvency.
D) Ordinary shareholders have unlimited liability.

Question

Quizplus · Accepted Answer

Ordinary shareholders have the lowest priority claim on a company's assets in the event of liquidation or insolvency. This means that they are last in line to receive any remaining funds after all other creditors and stakeholders have been paid. They also do not have a fixed maturity or guaranteed dividend payments, and their liability is limited to their investment in the company.

Which ONE of the Following Statements Is True About Ordinary