Holders of Equity Have Claims on Both Income and Assets

question 100

True/False

Holders of equity have claims on both income and assets that are secondary to the claims of creditors.

---

Definitions:

Letters Patent

A method of incorporating used in some jurisdictions in Canada whereby the government grants recognition to the company as a separate legal entity.

Nova Scotia

A province in Canada known for its maritime heritage and coastal beauty.

General Security Agreement

A legal document that secures the repayment of a loan or debt with the borrower's assets as collateral.

Statutory Relief

Legal remedies or exemptions provided under specific statutes or laws to mitigate or avoid certain legal obligations or penalties.