Question: Creditors can sue the entity if the amounts due them are not paid. Equity investors have only a residual claim; if the entity is dissolved,

Creditors can sue the entity if the amounts due them are not paid.

Equity investors have only a residual claim; if the entity is dissolved, they get whatever is left after the liabilities have been paid, which may be nothing. Liabilities therefore are a [stronger / weaker] claim against the assets, and equity is a [stronger / weaker] claim.

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