The Board Approves a Proposed Amendment to Deny Existing Preemptive

question 15

Multiple Choice

The board approves a proposed amendment to deny existing preemptive rights to Class A preferred, and to issue stock in a new Class D preferred that would be accorded liquidation preference after all other classes of preferred stock.Preferred Classes B and C would remain the same.Which of the following would be true?

• A) A majority of Class A, B, and C shareholders all together would be needed to pass the amendment.
• B) Only Class B and C shareholders vote.
• C) Class B and C shareholders would not be entitled to vote at all.
• D) Class A and C shareholders would vote together.

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Definitions:

Conform

To align one's behavior or beliefs with group norms or expectations, often as a result of real or imagined group pressure.

Conformity Causes

Factors that lead individuals to change their attitudes, beliefs, or behaviors to align with group norms or expectations.

Laughed At

being the subject of amusement or ridicule by others, often leading to feelings of embarrassment or humiliation.

Correct

Conforming to fact or truth; free from error, accurate or precise.