A shareholder has a contract with the corporation that gives him/ her limited rights just like bondholders, employees, and suppliers. yet economists often refer to shareholders as residual claimants.

explain what is meant by this concept using Balance Sheet: Assets = Liabilities + Shareholder's Equity

UCLA Law Professor LynnStot, says the residual claimant characterization is only accurate in the case of a "dead corporation" that is being liquidated but not a "live" corporation. explain her perspective and discuss the concept of "Retained Earnings" and who controls them in your explanation