Conversion Rights

question 21

Multiple Choice

Conversion rights

• A)specify the order in which classes of stockholders are paid upon dissolution.
• B)are designed to prevent dilution of a shareholder's ownership in the company.
• C)allow investors to convert to a different class.
• D)establish whether shareholders are entitled to dividends.

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Definitions:

Outcome Expectations

The beliefs that carrying out a specific behavior will lead to valued outcomes.

Operant Conditioning

An educational method where the intensity of an action is altered through rewards or penalties.

Positive Punishment

A method of behavior modification that involves the addition of an aversive stimulus in order to decrease a certain behavior.

Negative Punishment

A behavior modification technique where something desirable is removed following an undesired behavior, with the intention of decreasing that behavior.