Question

The view that equity holders only receive payment on their investment in a firm after all legitimate claims by a firm's other stakeholders are satisfied is known as the ________ view of equity holders.

A) stakeholder
B) residual claimants
C) legitimate claimants
D) extraordinary claims

Answer 1

The view that equity holders only receive payment on their investment in a firm after all legitimate claims by a firm's other stakeholders are satisfied is known as the residual claimants view.

Step-by-step explanation:

The view that equity holders only receive payment on their investment in a firm after all legitimate claims by a firm's other stakeholders are satisfied is known as the residual claimants view of equity holders. This view suggests that equity holders have the residual claim on a company's assets and earnings, meaning they are entitled to whatever is left after the obligations to other stakeholders have been met.