Question

Common stock holders: Group of answer choices have one vote in the election of how the company operates. are last in line to receive income. are guaranteed to get paid when the company fails. receive income before preferred stockholders.

Answer 1

Answer:

are last in line to receive income.

Explanation:

Common stock holders are referred to as the owners of the company. They own shares that gives them the right to vote in a company's general meeting, receive dividends, and they have the right to get newly issued shares in the company before others.

However they are also called unsecured creditors of the company because when the business makes income they are the last in line to receive dividends if any remains.

Also in the case of bankruptcy preference share holders and other creditors are paid first. Common share holders are paid last.