JAMB - Commerce (2024 - No. 73)

In the event of winding up of a company, who among the following is paid last?
Preference Shareholders
Ordinary shareholders
Cumulative preference shareholders
Debenture holders

Explanation

Ordinary shareholders have the lowest priority in the distribution of assets during the winding up of a company. They ar entitled to receive any remaining assets after all the other creditors and obligations have been satisfied. Preference shareholders, debenture holders, and trade creditors would typically have higher priority for payment than ordinary shareholders

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