What Is a Preemptive Right

question 28

Multiple Choice

What is a preemptive right?

• A) It is the right of shareholders to create a trust and elect a commissioner for the trust.
• B) It is the right of shareholders to make an advance voting agreement among them to vote in a specific manner.
• C) It is the right of shareholders to protect dilution of their percentage of share ownership.
• D) It is the right of shareholders to elect a representative, commonly another individual or a written document, through which they can cast their votes at the annual meeting.
• E) It is the right of shareholders to distribute their total votes in any manner they choose-all for one candidate or several shares for different candidates.

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Definitions:

Demand

The quantity of a good or service consumers are willing and able to purchase at various prices.

Normal Good

a good for which demand increases as the income of consumers increases and falls when their income decreases, assuming all other factors are constant.

Income Level

The amount of monetary or material wealth that an individual, family, or group receives, usually quantified on an annual basis.

Chocolate-Covered Peanuts

Peanuts that have been coated in a layer of chocolate, serving as a sweet and crunchy snack.