A Preemptive Right Is

question 68

Multiple Choice

A preemptive right is

• A)the right of stockholders to acquire a proportional amount of any new issues of common stock.
• B)the right of stockholders to fire and replace the board of directors.
• C)the right of the corporation to enter into legally binding contracts without the direct approval of the shareholders.
• D)the right of stockholders to supersede the actions of top management.
• E)the right of top management to act on behalf of the stockholders.

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Definitions:

Upstream

In the context of supply chain, refers to the activities or processes involved in obtaining raw materials or components required for manufacturing.

JIT

Just-In-Time; an inventory management strategy that minimizes inventory and maximizes efficiency by receiving goods only as they are needed in the production process.

Excess Inventory

Inventory levels that exceed the demand, often resulting in wasted resources and storage costs.

Manufacturing Capacity

The maximum amount of products that can be produced in a given period of time using available resources in a manufacturing facility.