If Shareholders Are Granted a Preemptive Right They Will

question 48

Multiple Choice

If shareholders are granted a preemptive right they will:

• A)be given the choice of receiving dividends either in cash or in additional shares of stock.
• B)be paid dividends prior to the preferred shareholders during the preemptive period.
• C)be entitled to two votes per share of stock.
• D)be able to choose the timing and amount of any future dividends.
• E)have priority in the purchase of any newly issued shares.

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Definitions:

Manager

An individual responsible for planning, directing, and overseeing the operations and fiscal health of a business unit, department, or organization.

Directs

To command, manage, or guide through instruction or command.

Responsible

Being responsible for performing certain actions or overseeing or looking after someone as a requirement of one's position or duty.

Blur

A lack of clarity or distinctness in an image, scenario, or situation, leading to confusion or ambiguity.