- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 4. Overview of Equity Securities
- Subject 2. Types and Characteristics of Equity Securities
CFA Practice Question
In a liquidation of a firm's assets the common shareholders have a claim to what is left after some other parties have been paid. These parties include ______.
II. employees
III. suppliers
IV. bondholders
I. tax authorities
II. employees
III. suppliers
IV. bondholders
Correct Answer: I, II, III and IV
The claim of common shareholders is called a residual claim.
User Contributed Comments 2
| User | Comment |
|---|---|
| janglejuic | poor shareholders! |
| Inaganti6 | without risk there is no return they knew what they were getting into |