The View That Equity Holders Only Receive Payment on Their

question 41

Multiple Choice

The view that equity holders only receive payment on their investment in a firm after all legitimate claims by a firm's other stakeholders are satisfied is known as the ________ view of equity holders.

• A) stakeholder
• B) residual claimants
• C) legitimate claimants
• D) extraordinary claims

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Definitions:

Incentives

Rewards, financial or otherwise, designed to motivate individuals or groups to perform certain actions.

Organizational Objectives

Specific goals a company or organization aims to achieve, guiding its internal strategy and decision-making processes.

Motivate Employees

Strategies or actions undertaken to inspire and encourage workers towards achieving goals and enhancing performance.

Centralized Structures

Organizational structures where decision-making authority is concentrated at a high level, with few individuals or a single entity controlling the organization.