Under the Revised Act,if the Charter Simply States That the Corporation

question 74

Multiple Choice

Under the Revised Act,if the charter simply states that the corporation elects to have preemptive rights,the shareholders have no preemptive rights with respect to:

• A)shares issued as compensation to directors, officers, and employees.
• B)shares issued within six months of incorporation.
• C)the corporation's unissued shares.
• D)Both (a) and (b).

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Definitions:

Marginal Cost

The expense associated with manufacturing an extra unit of a product or service.

Wholesale Price

The cost of goods sold in large quantities to retailers or distributors for the purpose of resale.

Third-Degree Price Discrimination

A pricing strategy where different prices are charged to different groups of consumers based on their willingness to pay.

Marginal Revenue

The additional income generated from the sale of one more unit of a product or service.