Which of the Statements Below Is FALSE

question 62

Multiple Choice

Which of the statements below is FALSE?

• A)If an investor purchases 20% of the initial issue of the company,the investor then owns 20% of the company,given the one vote-one share norm.
• B)After an initial offering,the company can sell more shares to the public at a later date.If the investor who originally purchased 20% does not purchase 20% of the subsequent issue,his or her ownership is diluted below 20%.
• C)A preemptive right enables one to maintain one's proportional level of ownership.
• D)A preemptive right is never particularly valuable to shareholders with large ownership percentages.

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Schema

A cognitive framework or concept that helps organize and interpret information, influencing perception and understanding.

Self-Concept

An individual's perception and evaluation of themselves, including beliefs, feelings, and thoughts about one’s identity and attributes.

Schema

A cognitive framework or concept that helps organize and interpret information in the world around us.

Impressions

The initial thoughts or feelings about someone or something, formed quickly and without much evidence.