If a Corporate Charter Includes a Provision for Preemptive Rights,the

question 38

Multiple Choice

If a corporate charter includes a provision for preemptive rights,the shareholders:

• A) must sell their shares to the company.
• B) get first option to buy additional issues of common shares.
• C) may purchase existing treasury shares.
• D) cannot utilize cumulative voting procedures.

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Definitions:

Society Manages

How collective groups of individuals govern, organize, or handle societal functions and resources.

Limited Wants

The concept that the desires or needs of human beings are finite or restricted due to limited resources and time.

Tradeoff

A scenario in which one characteristic or element is forfeited in exchange for acquiring a different characteristic or element.

Efficiency

The extent to which time, effort, or cost is well used for the intended task or purpose, often with the goal of minimizing waste and maximizing output.