Three Classmates Incorporated About a Week After Graduation

question 18

Multiple Choice

Three classmates incorporated about a week after graduation.The authorized capital was 500 000 common no-par-value shares.Each classmate took one share,and each was a director.If the directors decide to issue more shares from the treasury to raise more capital,which of the following provisions ensures that they keep their proportionate holdings?

• A)relief-from-oppression provision
• B)dissent procedure
• C)pre-emptive right provision
• D)indoor-management rule
• E)derivative-action provision

---

Definitions:

Average Costs

This refers to the per-unit production cost, calculated by dividing total costs by the total quantity produced, indicating the efficiency of production.

Output

The total amount of goods or services produced by a firm or economy.

Declines

Refers to a decrease in the value, amount, or quality of something, often observed in economic indicators or market trends.

Positive Slope

In mathematics, a line on a graph that shows a relationship where as one variable increases, so does the other.