Preemptive Rights Are

question 3

Multiple Choice

Preemptive rights are

• A)not legal in the majority of states.
• B)designed to prevent dilution of a shareholder's ownership in the company.
• C)required to be offered to shareholders by the Model Act.
• D)designed to indemnify managers who act in good faith.

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Definitions:

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Stakeholders

Stakeholders are individuals, groups, or organizations that have a direct or indirect stake in an organization as they can affect or be affected by the organization's actions, objectives, and policies.

External Audit

An independent examination of financial records and statements by an outside firm or body to ensure accuracy and compliance with accounting standards and regulations.

Portfolio Analysis

The evaluation of investment assets, or a collection of projects, to make strategic decisions based on performance and risk.