Which One of the Following Rights Is Never Directly Granted

question 65

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:

Effective Tax Rate

The average percentage of their total income that individuals or corporations pay in taxes.

Profit/(Loss) Realized

The actual gain or loss generated from completing a transaction.

Intercompany Sale

The sale of goods or services between divisions or subsidiaries within the same parent company.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the usage, wear and tear, or obsolescence of the asset.