The Preemptive Right Is Designed to

question 6

Multiple Choice

The preemptive right is designed to

• A)allow management to diffuse stock ownership any voting power.
• B)allow managers to preempt a stock offering if they do not like the terms of the deal.
• C)allow existing shareholders the right to sell their existing shares before the new offer.
• D)allow existing shareholders to buy shares of the new offering if they desire.
• E)None of these choices are correct.

---

Definitions:

Basic Emotion

Fundamental emotions that are hard-wired into the brain and universally recognized, such as happiness, sadness, fear, and anger.

Visual Cliff

A psychological experiment setup to test infants' and young animals' perception of depth and their fear of falling.

Ambiguous

Something that can be understood in more than one way or is unclear because it has multiple interpretations.

Action Tendencies

The predispositions to behave in certain ways in response to specific emotions or environmental stimuli.