Common shareholders have a claim on the company's assets:
A) at any time, equal to the value of their shares.
B) only after the claims of debtholders and preferred shareholders have been satisfied.
C) after the claims of the preferred shareholders have been satisfied, but before the debt holders.
D) never. Common shareholders have no claim on the company's assets.

The correct option is B,common shareholders have a claim on the company's assets only after the claims of debt-holders and preferred shareholders have been satisfied.

Explanation:

The debt-holders have priority over preferred shareholders and common shareholders in laying claims to the assets of the company.This accounts for the reason why payment of interest on their loans is accorded highest priority.

The preferred shareholders have priority on company assets over the common shareholders in the event of company going bankrupt.

The common shareholders are at the bottom-line in terms of claims t assets upon liquidation,however they share in excess gains from liquidation as they are the original owners of the company entitled to higher risks and rewards.

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