A Right of First Refusal on a Share Certificate Allows

question 37

True/False

A right of first refusal on a share certificate allows the corporation to match the offer that a selling shareholder receives for his shares.

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Definitions:

Implicit Costs

The opportunity costs involved in using resources that a firm already owns, for which it does not make a direct payment.

Accounting Profits

The total revenue of a business minus the explicit costs associated with producing goods or services, not accounting for implicit costs.

Economic Profits

The variance between a company's overall earnings and the sum of its explicit and implicit expenditures.

Explicit Costs

Explicit costs refer to direct payments made for the operation of a business, like wages, rent, and materials.