What represents the ownership of stockholders who have a residual claim on the assets of the corporation after all other claims have been settled? A. Authorized capital stock B. Preferred stock C. Incorporator stock D. Common stock

The correct answer is: D. Common stock

Common stock is a type of equity share that represents ownership in a corporation. It is the most basic form of

ownership and is typically issued to the public through an initial public offering (IPO). Common stockholders have a residual claim on the assets of the corporation after all other claims have been settled. This means that they are the last to receive any distributions of assets in the event of a liquidation. Common stockholders also have the right to vote on matters that affect the corporation, such as the election of directors and the approval of mergers and acquisitions.

Authorized capital stock is the maximum number of shares that a corporation is authorized to issue. Preferred stock is a type of equity share that has a higher claim on the assets of the corporation than common stock. Incorporator stock is the stock that is issued to the founders of a corporation.

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