Which Investor Would Get First Claim on the Assets of a Company

question 10

Multiple Choice

Which investor would get first claim on the assets of a company that is struggling financially?

• A)Common Stock Investors
• B)Preferred Stock Investors
• C)Bond Investors
• D)The investor that acts fastest.
• E)No one would, the company would be bankrupt

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Definitions:

Obligations

Duties or responsibilities imposed by law, contract, or moral principals.

Contract

A legally enforceable agreement between two or more parties with mutual obligations.

Terminated

Ended or concluded, often referring to the cessation of employment, contracts, or legal agreements.

Obligations

Duties or responsibilities imposed by law, contract, or one's conscience.