"Preemptive Rights" Refers To

question 90

Multiple Choice

"Preemptive rights" refers to:

• A) The right of shareholders to share proportionately in dividends paid.
• B) The right of shareholders to share proportionately in any new stock issues sold.
• C) The right of shareholders to share proportionately in liquidated assets.
• D) The right of shareholders to vote at annual shareholder meetings.
• E) The right to redeem shares.

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Definitions:

Passive Voice

A sentence construction where the subject of the sentence is acted upon instead of performing the action.

Active Voice

A grammatical voice used when the subject of the sentence performs the action expressed by the verb.

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