If a Corporation Fails, the First Recipients of Funds That

question 169

Multiple Choice

If a corporation fails, the first recipients of funds that may remain are

• A) preferred stockholders.
• B) common stockholders.
• C) bond holders.
• D) no one.

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Definitions:

Distribution Of Income

The way in which total income is shared out among households, firms, and the government within an economy.

Income Inequality

Refers to the unequal distribution of wealth and income among the members of a society.

Preferences

In economics, the individual tastes or desires that dictate the choices made by consumers based on the satisfaction or utility they get.

Risk

The uncertainty as to the future returns of a particular financial investment or economic investment.