The Preemptive Right Refers to the Shareholder's Right To

question 86

Multiple Choice

The preemptive right refers to the shareholder's right to:

• A) Maintain a proportional ownership interest in the corporation.
• B) Vote for members of the board of directors.
• C) Receive a share of dividends.
• D) Share in profits proportionally with all other stockholders.

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Definitions:

Day

A period of 24 hours as a unit of time, representing the time it takes for the Earth to complete one rotation around its axis.

Indeterminate

A situation or outcome that cannot be predicted, decided, or clearly defined.

Total Utility

The complete fulfillment derived from the consumption of a specific amount of products or services.

Marginal Utility

The extra pleasure or advantage obtained from the consumption of an additional unit of a product or service.