Which of the statements below is FALSE?

A.Shareholders elect the board of directors, which ultimately selects the management team that runs the dayminustominusday operations of the company.

B. Common stock's ownership claim on the assets and cash flow of a company is often referred to as a residual claim.

C. The profits for common stock owners come before payment to employees, suppliers, government, and creditors.

D. Stock is a major financing source for public companies.