The Right of Common Shareholders to Protect Their Proportionate Interest

question 79

Multiple Choice

The right of common shareholders to protect their proportionate interest in a corporation by having the first opportunity to buy additional shares of common shares issued by the corporation is called

• A)Preemptive right
• B)Proxy
• C)Right to call
• D)Financial leverage
• E)Voting right

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Definitions:

Intrinsic Motivation

A drive to engage in activities for their own sake, due to interest, satisfaction, or personal challenge.

Autonomy

The capacity of an individual to make an informed, un-coerced decision; often associated with independence and self-governance.

Extrinsic Motivation

The drive to perform or engage in an activity due to external rewards or pressures, rather than for the enjoyment or satisfaction derived from the activity itself.

Psychological Needs

Fundamental emotional or mental requirements for well-being and overall mental health, such as the needs for belonging, love, esteem, and self-actualization.