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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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