"Preemptive Rights" Means That

question 105

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.
• D) management can preempt the right of shareholders to receive dividends if earnings are down.

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Definitions:

Pelvic Floor

The muscles and connective tissues that support the organs of the pelvis, including the bladder, intestines, and, in females, the uterus and vagina.

Pubococcygeus

A muscle of the pelvic floor that supports pelvic organs and is involved in controlling the flow of urine and contractions during orgasm.

External Anal Sphincter

This is a muscle that surrounds the anal canal, allowing control over the expulsion of feces from the body.

External Urethral Sphincter

A muscle that controls the flow of urine from the bladder through the urethra, allowing for voluntary urination.