The Right of Current Stockholders to Purchase Additional Shares of Newly

question 75

Multiple Choice

The right of current stockholders to purchase additional shares of newly issued stock in order to maintain the same percentage ownership is called:

• A) liquidation.
• B) preemptive rights.
• C) cumulative preference.
• D) voting rights.

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Definitions:

Chain of Command

The formal line of authority, shown within an organization, where commands are passed down from one level to the next.

Administrator

A manager in a public or nonprofit organization.

Accountability

The obligation of an individual or organization to account for its activities, accept responsibility for them, and to disclose the results in a transparent manner.

Henry Mintzberg

A renowned management theorist known for his work on business strategy and organizational structures.