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The parties who are paid last in the event of winding-up are

Accounts - Principles of Accounts
WAEC 2018

The parties who are paid last in the event of winding-up are

  • A. preference shareholders
  • B. debenture holders
  • C. ordinary shareholders
  • D. trade creditors
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Correct Answer: Option C
Explanation

Ordinary Shareholders represent people who have a fraction of ownership in a corporation that issues such shares. They get to vote on the company's major decisions, usually decided at its shareholder meetings. The shareholder may or may not receive a dividend. They are usually the last to get paid in the event that the company is folding up.


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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts