The Right of Shareholders to Receive New Shares When New

question 31

Multiple Choice

The right of shareholders to receive new shares when new shares are issued is called:

• A)a residual owner.
• B)a general cash offer.
• C)a private placement.
• D)a pre-emptive right.

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Definitions:

Partnership Losses

Denotes the deficits shared by partners in a business partnership, reflecting negatively on the partnership's fiscal health and possibly impacting individual partners' finances based on their share.

Secret Profit

A financial benefit that an individual or entity gains without disclosing it to the relevant parties, typically in situations where there is a duty to disclose such benefits.

Business Transaction

An economic event with a monetary impact on an entity's financial statements, often involving the exchange of goods or services.

Actual Authority

The express and implied powers granted by a principal to an agent to act on their behalf.