The Shareholders of the Parent Entity in a Group Are

question 8

Multiple Choice

The shareholders of the parent entity in a group are entitled to:

• A) total profits of all group members.
• B) parent entity interest in consolidated group profit.
• C) non-controlling interest in consolidated group profit.
• D) none of the above.

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Definitions:

Preemptive Rights

The right of existing shareholders to maintain their proportional ownership in a company by purchasing a proportional number of new shares before the company offers them to the public.

Treasury Stock

Treasury Stock refers to shares that were issued and subsequently repurchased by the issuing company, reducing the amount of outstanding stock on the open market.

Authorized Stock

The total number of shares a corporation is legally allowed to issue, as defined in its articles of incorporation.

Treasury Stock

Shares that were issued by a company and later reacquired. These shares do not pay dividends or have voting rights while held by the company.