A Preemptive Right Means Shareholders Can Purchase Their Proportional Share

question 175

True/False

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

---

Definitions:

Environmental Degradation

The deterioration of the environment through depletion of resources, destruction of ecosystems, and the extinction of wildlife.

Sensitive

Capable of detecting or responding to slight changes, signals, or influences.

Mutualism

A type of symbiotic relationship where both participants benefit.

Benefit

A benefit is an advantage or profit gained from something.