Which of the Following Is True of the Issuance of Nonvoting

question 61

Multiple Choice

Which of the following is true of the issuance of nonvoting common stock?

• A) It is issued in the event of a hostile takeover to preserve the interests of existing owners.
• B) It helps the corporation to raise capital through the sale of common stock, without giving up its voting control.
• C) It helps the existing stockholders to automatically transfer their voting rights to new stockholders without any legal proceeding.
• D) It tends to result in the dilution of voting rights of current stockholders.

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Definitions:

LEO

Low Earth Orbit, referring to a satellite system orbiting relatively close to Earth, used for telecommunications, weather, and observation.

MEO

Medium Earth Orbit, a region of space around the Earth above low Earth orbit (LEO) and below geostationary orbit (GEO), typically used for navigation and communication satellites.

Orbital Speed

The speed at which an object must travel to maintain its orbit around a celestial body, determined by the gravitational pull of the body and the distance from it.

GEO

Geostationary Earth Orbit; a circular orbit 35,786 kilometers above the Earth's equator and following the direction of the Earth's rotation.