Which of the Following Is an Example of Authority

question 30

Multiple Choice

Which of the following is an example of authority?

• A) Jane throws the bouquet at her wedding as it is a custom that her family follows.
• B) Jack eats five almonds every day as his mother says that they are good for health.
• C) A girl gets married to her best friend because she loves him.
• D) Teens copy celebrities' dressing style to look fashionable.
• E) People use social media prevalently these days.

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Definitions:

Minority Shareholder

A minority shareholder is someone who owns less than 50% of a company's shares and therefore does not have a controlling interest in the company.

Preemptive Rights

Rights that allow existing shareholders the opportunity to buy new shares of a company's stock before it is offered to the public, often to maintain their percentage of ownership.

Liquidation Preference

Liquidation preference is a term used in finance and investments to describe the priority of repayment to investors of a company's shares if the company liquidates, goes bankrupt, or is sold.

Class A Preferred

A type of preferred stock that provides holders with specific financial advantages, such as priority in dividend payments or asset distribution over other classes of stock.