The Preemptive Right Gives Shareholders the Right ________

question 38

Multiple Choice

The preemptive right gives shareholders the right ________.

• A) to caste one vote for each share owned at the annual meeting of the company
• B) to give up their vote to another party if they do not attend the annual meeting
• C) to maintain their proportionate ownership in the corporation when new common stock is issued
• D) to sell their share of stock at a premium in the event of liquidation

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Definitions:

Anticipation Response

The reaction or behavior that precedes and prepares for an expected stimulus or event.

Cutaneous Receptors

Sensory receptors found in the dermis or epidermis of the skin that respond to stimuli such as touch, temperature, and pain.

Endorphin

Naturally occurring peptides in the brain that act as neurotransmitters to reduce pain and elicit feelings of pleasure or euphoria.

Substance P

Substance P is a neuropeptide involved in the transmission of pain and other sensory signals to the central nervous system.