Stockholders Have Preemptive Rights Because

question 153

Multiple Choice

Stockholders have preemptive rights because:

• A)preemptive rights come with every stock purchase.
• B)are required by law.
• C)are written into the companies rules of operation (its charter, articles, or bylaws).
• D)preemptive rights prevent disproportional  ownership.

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Definitions:

Unpleasant Consequence

An undesirable result or effect that follows a particular action or decision.

Law of Immediate Reinforcement

A principle stating that behaviors are more likely to be repeated when they are immediately followed by a positive reinforcement.

Desirable Behaviour

Actions or reactions that are preferred or encouraged within a specific context due to their positive outcomes or alignment with set norms.

Reinforcing Value

The increase in likelihood of a behavior reoccurring, due to the positive outcomes or rewards associated with it.