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Shareholders are said to have a residual claim on the firms assets. What does this mean? Shareholders have limited liability in their investment. Shareholders do

Shareholders are said to have a residual claim on the firms assets. What does this mean?

Shareholders have limited liability in their investment.

Shareholders do not receive any payoff from the firm until all creditors are paid.

Shareholders are allowed to recover their investment first if the firm experiences financial distress.

Shareholders have priority in electing the board of directors for the firm.

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