Which One of the Following Rights Is Never Directly Granted

question 65

Multiple Choice

Which one of the following rights is never directly granted to all shareholders of a publicly-held corporation?

• A)electing the board of directors
• B)receiving a distribution of company profits
• C)voting either for or against a proposed merger or acquisition
• D)determining the amount of the dividend to be paid per share
• E)having first chance to purchase any new equity shares that may be offered

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Definitions:

Fixed Costs

Expenses that remain constant for a company irrespective of the level of production or sales.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, providing a more relevant comparison of actual to budgeted performance.

Total Variable Cost

The sum of all variable costs (costs that change with production volume) involved in producing a specific level of output.

Activity Declines

A reduction in the level of operations, production, or business activities.