The Right to a Residual Claim on Assets Means That

Multiple Choice

The right to a residual claim on assets means that:

A) if a corporation goes out of business, common stockholders have a right to vote on issues regarding the liquidation of its assets.
B) if a corporation goes out of business and liquidates its assets, common stockholders have a right to share in the proceeds in proportion to their ownership.
C) if a corporation goes out of business and liquidates its assets, common stockholders must be repaid the capital invested by them before the company pays its other dues.
D) if a corporation goes out of business and liquidates its assets, common stockholders have to be paid a set interest on the capital invested by them.