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Which one of the following comparisons between debt and equity is correct?
a. Both creditors and stockholders are owners of the firm.
b. Both creditors and stockholders vote to elect the board of directors.
c. Stockholders are the owners of the firm but the creditors vote on all major decisions.
d. The creditors have first claim to the firm’s assets but the stockholders are the owners.
e. Since the stockholders are the firm’s owners, they have a higher claim to the firm’s assets than do the creditors.

Answer :

.B is correct I just took the test

Of all the given options, the correct one for the comparison of the debt and the equity is that Stockholders are the owners of the firm but the creditors vote on all major decisions. Hence, Option C is correct.

Who are the stockholders?

There are various types of companies present in the world. They are divided into a few categories that are private, semi-private, and government. Out of all these companies, there are some of them listed in the stock market. The person who invests in the stock market is known as the investor.

And in the company in which they invest will become the shareholder of the company and are also called the stockholders. Basically, a shareholder or a stockholder is a person who can own a single share or according to the capacity of purchasing that the holder has.

There are types of stockholders. In simple terms, they are the residual owners, but it is the creditors who have the preference over repayment but do not have the right to vote.

Thus, Option C is correct.

Learn more about stockholders from here:

https://brainly.com/question/18523103

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