"Preemptive Rights" Means That

question 56

Multiple Choice

"Preemptive rights" means that:

• A) existing shareholders can prevent management from issuing additional common stock.
• B) common shareholders can "preempt" preferred shareholders for dividends.
• C) existing common stock shareholders are guaranteed an opportunity to retain their proportional share of ownership of the firm.
• D) management can preempt the right of shareholders to receive dividends if earnings are down.

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Definitions:

Therapeutic Group

A form of group therapy where participants support each other under the guidance of a therapist to address personal and psychological issues.

Authority

The right or power to enforce rules, make decisions, and command obedience within a specific sphere.

Single-leadership

Refers to a leadership style where one individual holds the primary decision-making power and leadership role within a group or organization.

Group Member

An individual who belongs to a specific group and participates in its activities, contributing to its goals.