A Preemptive Right Means Shareholders Can Purchase Their Proportional Share

question 106

True/False

A preemptive right means shareholders can purchase their proportional share of common stock issued later by the corporation.

---

Definitions:

Motive

refers to the reason behind an action or behavior, often driving or inspiring someone to act in a particular way.

DNA Evidence

Biological material used in legal contexts to associate a suspect with a crime scene, victim, or object, due to the unique genetic information it carries.

Fingerprint Evidence

Forensic proof typically used in legal proceedings that involves analyzing and matching fingerprints found at a crime scene to those of a suspect.

Criminally Liable

The legal responsibility of a person for committing a crime, meaning they can be prosecuted and potentially face penalties or imprisonment.