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

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Definitions:

Standard Error

The statistical measure that describes the accuracy with which a sample represents a population, often used in inferential statistics.

Sampling Distribution

The distribution of values in a sample.

Significant Correlation

Significant correlation refers to a statistical relationship between two variables that is unlikely to have occurred by chance, indicating a meaningful association.

Causal Relationship

A relationship between variables in which changes in one variable demonstrably result in changes in another.