On liquidation of a public limited liability company, the...
On liquidation of a public limited liability company, the residual owners are the
creditors
ordinary shareholders
preference shareholders
debenture holders
Correct answer is B
Common stockholders also known as ordinary shareholders, are the residual owners because their claim to dividends and receiving compensation in the case of bankruptcy, are at the bottom of the line. This means that, other classes of shareholders get compensated first, and whatever is left is given to the common stock holders.
Residual claim: is the rights of shareholders to the remaining assets once the fixed claims on a business have been met.
Which of the following is not an obligation of a common carrier? ...
A bill of exchange already accepted can be discounted by the holder in? ...
The right of ownership with respect to goods or property is? ...
Which of the following is not provided by the post office? ...
Which of the following is used to inform the buyer that goods available for sale? ...
The environmental hazard that is most difficult to control is ...
Which of the following is not a function of the Central Bank ...
Which of the following is an internal source of capital to a business concern? ...
An agent who takes possession of goods and sells in his own name is known as? ...