The Preemptive Right Enables a Shareholder to

question 58

Multiple Choice

The preemptive right enables a shareholder to

• A) share proportionately in any new issues of shares in the same class.
• B) receive cash dividends before other classes of shares without the preemptive right.
• C) sell shares back to the corporation at the option of the shareholder.
• D) receive the same amount of dividends on a percentage basis as the preferred shareholders.

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Definitions:

Therapist

A professional trained to treat emotional, behavioral, and mental disorders, providing support and strategies to help individuals understand and overcome their challenges.

Shaping

In psychology, shaping is a technique used in behavior modification that involves reinforcing behaviors that are progressively closer to the desired behavior.

Behavior Therapy

A type of psychotherapy that treats mental disorders by modifying observable behaviors and uses techniques based on principles of learning.

Operant Conditioning Procedures

A method of learning that uses rewards and punishments to increase or decrease the likelihood of a behavior.