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

question 20

Multiple Choice

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

• A) common Stock
• B) preferred stock
• C) convertible preferred stock
• D) convertible debt
• E) American-style option

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Definitions:

Rescission

The act of revoking, canceling, or annulling a contract, returning all parties to their statuses prior to the contract's formation.

Mistake of Law

An error made by a person in understanding the law as it pertains to their actions, which generally is not considered a defense in criminal law.

Duress

A situation where someone acts against their will or is forced into an agreement or decision under pressure or threat.

Improper Threat

A form of coercion that is illegitimate or unethical, used to induce another party to act in a manner they otherwise would not.