The ________ Are Sometimes Referred to as the Residual Owners

question 103

Multiple Choice

The ________ are sometimes referred to as the residual owners of the corporation.

• A) preferred stockholders
• B) unsecured creditors
• C) common stockholders
• D) secured creditors

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Definitions:

Equity

The value of an ownership interest in property, including shareholders' equity in a corporation, representing assets minus liabilities.

Stock Repurchase

A company's buyback of its own shares from the marketplace, reducing the number of outstanding shares, which can increase the value of remaining shares.

Investment

The process of distributing funds or resources in anticipation of earning profits or income.

Profitable

A financial status indicating that the revenue of an entity is greater than its expenditures over a specified period, resulting in a net gain.