Shareholders of a Business Enterprise Are Said to Be the Residual

question 77

Multiple Choice

Shareholders of a business enterprise are said to be the residual owners.The term residual owner means that shareholders

• A)are entitled to a dividend every year in which the business earns a profit.
• B)have the rights to specific assets of the business.
• C)bear the ultimate risks and uncertainties and receive the benefits of enterprise ownership.
• D)can negotiate individual contracts on behalf of the enterprise.

---

Definitions:

Argument

A series of statements or reasons made to support or oppose a conclusion.

Cold Front

A leading edge of a cooler mass of air, replacing at ground level a warmer mass of air, characterized by weather changes.

Rain

Water droplets that fall from clouds in the atmosphere to the ground.

Proposition

A statement expressing an idea that can be true or false.