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Which of the following statements regarding common stock is correct? A ) Guarantees payment before bondholders in case of liquidation. B ) Shareholders are claimants
Which of the following statements regarding common stock is correct?
A
Guarantees payment before bondholders in case of liquidation.
B
Shareholders are claimants on both the income and assets of the corporation, receiving what remains after creditors and preferred shareholders are paid.
C
Represents an ownership interest in the corporation.
D
Shareholders are not protected from personal liability.
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