Which One of the Following Rights Is Never Directly Granted

question 5

Multiple Choice

Which one of the following rights is never directly granted to all shareholders of a publicly held corporation?

• A) Electing the board of directors
• B) Receiving a distribution of company profits
• C) Voting either for or against a proposed merger or acquisition
• D) Determining the amount of the dividend to be paid per share
• E) Having first chance to purchase any new equity shares that may be offered

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Definitions:

Explicit Costs

Costs that involve direct monetary payment by a firm for the resources needed in production, such as wages and materials.

Implicit Costs

The opportunity costs of utilizing resources owned by the company for its operations instead of other purposes.

Accounting Profit

The financial gain calculated by subtracting total explicit costs from total revenues, excluding the consideration of implicit costs or opportunity costs.

Economic Profit

The gap between a company's total earnings and its combined explicit and implicit expenses.