Ordinary Shareholders Are Essentially [Blank] of the Firm

question 41

Multiple Choice

Ordinary shareholders are essentially [blank] of the firm.

• A)creditors
• B)managers
• C)owners
• D)proxies.

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Definitions:

Net Income

The profit of a business after all expenses, taxes, and costs have been subtracted from total revenue.

Income Statement

A document detailing a business's income, expenditures, and earnings during a designated timeframe.

Solvency

The ability of a company or individual to meet its long-term financial obligations and continue operating in the long term.

Price-Earnings Ratio

A valuation metric for companies, calculated by dividing a company's share price by its earnings per share.