The Disadvantage of a Rights Offering Is

question 13

Multiple Choice

The disadvantage of a rights offering is

• A) current shareholders are not protected against dilution.
• B) the firm has a built-in market of knowledgeable investors.
• C) distribution costs are higher than a public offering.
• D) all of the other answers are correct

---

Definitions:

Hobby Lobby v. Obama

A landmark Supreme Court case which determined that privately owned corporations could be exempt from a law its owners religiously objected to, if there was a less restrictive means of furthering the law's interest, specifically referring to the Affordable Care Act's contraceptive mandate.

Public Perceptions

The collective opinions or beliefs of the general population about issues or subjects.

Economic Issues

Concerns related to the financial and monetary aspects of society, including unemployment, inflation, taxation, and financial regulation.

Foreign Policy Issues

Concerns and strategies that a country develops in relation to other nations regarding defense, trade, diplomacy, and more.