A Pre-Emptive Right Refers to the Right of Existing Shareholders

question 30

True/False

A pre-emptive right refers to the right of existing shareholders to sue management in order to head off potential actions by management that would adversely affect the price of the stock.

---

Definitions:

Stakeholders

Any group that a business interacts with, such as customers, competitors, unions, suppliers, consumer groups, and government agencies.

Standards Of Conduct

Formal or informal rules that govern behaviors within a group, organization, or society, often reflecting shared values and norms.

Morals

Principles or beliefs concerning the distinction between right and wrong or good and bad behavior, often shaped by cultural and personal values.

In-Group

A social group to which a person psychologically identifies as being a member.