Which of the Following Has the Least Senior Claim on a Venture's

question 59

Multiple Choice

Which of the following has the least senior claim on a venture's asset?

• A)common stock
• B)preferred stock
• C)convertible preferred stock
• D)convertible debt

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Definitions:

Trade Credit

A financial arrangement where a buyer can purchase goods on account, paying the supplier at a later date, often used to improve cash flow.

New Businesses

Entities that have been recently established and are in the early stages of their operational and financial life cycle, facing unique challenges such as market entry and funding.

Credit Card Company

A financial institution that issues credit cards to consumers, offering a revolving line of credit that can be used to make purchases, transfer balances, and/or access cash advances.

Percentage Of Sale

A commission structure where payment is based on a percentage of the sales made.