Two Technicians Are Discussing How to Repair Minor Scratches on the Seal

question 32

Multiple Choice

Two technicians are discussing how to repair minor scratches on the seal surface of a shaft [the part of the shaft the seal rides on]. Technician A uses fine emery cloth to polish the seal surface. Technician B uses a mill file. Who is correct?

• A) A only
• B) B only
• C) both A and B
• D) neither A nor B

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Definitions:

Preemptive Rights

Rights that allow existing shareholders the opportunity to buy new shares of a company's stock before it is offered to the public, often to maintain their percentage of ownership.

Liquidation Preference

Liquidation preference is a term used in finance and investments to describe the priority of repayment to investors of a company's shares if the company liquidates, goes bankrupt, or is sold.

Class A Preferred

A type of preferred stock that provides holders with specific financial advantages, such as priority in dividend payments or asset distribution over other classes of stock.

Corporate Assets

All owned items of value, including tangible and intangible properties, that belong to a corporation.