The Pre-Emptive Right of a Common Stockholder Is the Right

question 70

Multiple Choice

The pre-emptive right of a common stockholder is the right to

• A) share proportionately in corporate assets upon liquidation.
• B) share proportionately in any new issues of stock of the same class.
• C) receive cash dividends before they are distributed to preferred stockholders.
• D) exclude preferred stockholders from voting rights.

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Definitions:

Service Sector

Refers to the segment of the economy that provides services rather than producing goods, including industries like retail, healthcare, and finance.

Labour-intensive

Describing industries or processes that require a large amount of manual labor compared to the amount of capital.

Automate

the process of using technology to perform tasks with minimal human intervention, improving efficiency and accuracy.

Intellectual Task

A task that requires cognitive skills and mental effort, involving thinking, problem-solving, and decision-making.