"Preemptive Rights" Means That

question 17

Multiple Choice

"Preemptive rights" means that

• A)existing shareholders can prevent management from issuing additional common stock.
• B)common shareholders can "preempt" preferred shareholders for dividends.
• C)existing shareholders are guaranteed an opportunity to retain their proportional share of ownership of the firm.
• D)management can preempt the right of shareholders to receive dividends if earnings are down.

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Definitions:

Biological Explanation

An explanation of phenomena or behaviors based on biological factors, such as genetics, biochemistry, or physiology.

Sex-atypical Behavior

Actions or behaviors that do not conform to the traditional expectations of one's sex, often regarding interests, hobbies, or mannerisms.

Mothers

Female parents who have given birth to, adopted, or raised a child or children.

Fathers

Male parents who bear responsibility for their children's upbringing and welfare.