Stockholders are residual claimants, meaning that they
A) have the first priority claim on all of a company's assets.
B) are liable for all of a company's debts.
C) will never share in a company's profits.
D) receive the remaining cash flow after all other claims are paid.
D
You might also like to view...
Factors of production include
A) the economic system. B) land, labor, capital and entrepreneurship. C) labor and capital (not land, which is fixed). D) only capital, land, and labor.
Although there are many reasons why a market can be non-competitive, the principal economic difference between a competitive and a non-competitive market is:
A) the number of firms in the market. B) the extent to which any firm can influence the price of the product. C) the size of the firms in the market. D) the annual sales made by the largest firms in the market. E) the presence of government intervention.
A monopolist's average revenue is always
a. equal to marginal revenue. b. greater than the price of its product. c. equal to the price of its product. d. less than the price of its product.
The contract curve is the collection of points where utility curves are tangent in the Edgeworth box.
A. True B. False C. Uncertain