The Preemptive Right Is Important to Shareholders Because It

question 78

Multiple Choice

The preemptive right is important to shareholders because it

• A) Allows management to sell additional shares below the current market price.
• B) Protects the current shareholders against dilution of ownership interests.
• C) Is included in every corporate charter.
• D) Will result in higher dividends per share.
• E) The preemptive right is not important to shareholders.

Recognize the characteristics of individuals with a high need for achievement and how it influences their job performance preference.

Explain the expectancy theory of motivation and its components (expectancy, instrumentality, valence).

Discuss managerial implications of motivation theories for effective employee motivation and performance.

Understand the defining characteristics and diagnostic criteria of various psychological disorders, including personality and dissociative disorders.

---

Definitions:

Manufacturing Overhead

Any production expenses beyond the cost of direct materials and labor, which include charges like equipment wear and tear, as well as overhead costs such as utility bills and property rental fees.

Produced Units

The quantity of finished goods a company has manufactured during a specific time period.

Maintenance Cost

Expenses incurred to keep property, plant, and equipment in operating condition, ensuring they can perform their intended functions.

Cost Formula

A mathematical expression or equation used to calculate the total cost of producing goods or services, based on factors like raw material, labor, and overhead costs.