If a Corporate Charter Includes a Provision for Preemptive Rights,the

question 38

Multiple Choice

If a corporate charter includes a provision for preemptive rights,the shareholders:

• A) must sell their shares to the company.
• B) get first option to buy additional issues of common shares.
• C) may purchase existing treasury shares.
• D) cannot utilize cumulative voting procedures.

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Definitions:

Classical Economists

Economists from the late 18th and early 19th centuries who believed in free markets, competition, and the self-regulating nature of economies.

Sticky Wages

A situation in economics where wages do not adjust quickly to changes in labor market conditions, often leading to unemployment or surplus of labor.

Business Expectations

Business expectations relate to the outlooks and forecasts that businesses have regarding future economic conditions, which can influence their strategic planning and operations.

Progressive Tax

A tax system in which tax rates increase as the taxable amount increases, placing a higher burden on those with higher incomes.