In the Event of a Corporations Liquidation, Which Group of Persons

question 34

Multiple Choice

In the event of a corporations liquidation, which group of persons would receive any surplus funds after all creditors have been paid?

• A) whatever the corporate charter or by- laws dictate
• B) preferred shareholders
• C) bond holders
• D) preferred and common shareholders (split evenly)
• E) management

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Definitions:

Competitive Market Economy

An economic system where numerous buyers and sellers interact in the marketplace, with competition determining the price and quantity of goods and services.

Self-interest

The pursuit of personal gain or advantage, whether economic, psychological, or physical.

Command System

A method of organizing an economy in which property resources are publicly owned and government uses central economic planning to direct and coordinate economic activities; socialism; communism. Compare with market system.

Central Planning

An economic system where the government or a central authority makes all decisions about the production and allocation of goods and services.