What term refers to a corporation owner's interest in profits or net assets upon dissolution?

Prepare for your Partnership and Corporation Exam with engaging flashcards and multiple-choice questions. Each question comes with hints and detailed explanations. Boost your confidence and ace the exam!

The correct term that refers to a corporation owner's interest in profits or net assets upon dissolution is "share of stock." This term denotes ownership in a corporation, and it signifies the holder's claim on the assets and earnings of the company. When a corporation is dissolved, shareholders are entitled to receive their proportionate share of any remaining assets after all liabilities have been settled, which highlights the connection between shares of stock and interests in profits or net assets.

When evaluating the other options, "dividend" is a distribution of profits to shareholders, but it does not represent an ownership interest directly. "Certificate of stock" is a document that evidences stock ownership but does not itself represent an interest in profits or assets. "Capital" generally refers to financial resources or funds invested in the business rather than directly to ownership interests in the corporation. Thus, "share of stock" is the most appropriate term in this context.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy