In terms of ownership structure, what do common stockholders represent?

Common stockholders represent residual owners of the firm, which is the correct answer. This designation reflects the fact that common stockholders are entitled to the residual earnings of a company after all prior claims have been satisfied, including those of creditors and preferred shareholders. They hold ownership stakes that give them a claim on the company’s assets and profits, but only after all debts and obligations have been paid.

Being residual owners means that common stockholders benefit from the company's success through potential dividends and capital appreciation, but they also bear the risk of loss if the company performs poorly. If a firm liquidates, common stockholders are paid last, only after all liabilities and obligations have been fulfilled, further emphasizing their status as the residual claimants.

The other choices describe different roles within a firm's ownership structure that do not apply to common stockholders. For example, creditors are individuals or institutions that lend money to the firm and have priority in asset claims. Shareholders with priority on assets typically refer to preferred shareholders, who have a fixed dividend and a higher claim on assets compared to common stockholders. Lastly, preferred investors enjoy a fixed dividend and certain privileges not given to common stockholders, which further distinguishes them from the role of common stockholders in the context of ownership structure