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lisabon 2012 [21]
3 years ago
9

The preemptive right is important to shareholders because it a. allows managers to buy additional shares below the current marke

t price. b. is included in every corporate charter. c. protects the current shareholders against a dilution of their ownership interests. d. protects bondholders, and thus enables the firm to issue debt with a relatively low interest rate. e. will result in higher dividends per share.
Business
2 answers:
katrin2010 [14]3 years ago
8 0

Answer:

c. protects the current shareholders against a dilution of their ownership interests.

Explanation:

Preemtive rights of a shareholder is the right of a current shareholder to buy a certain amount of future shares that will be issued by the company. For example if an individual owns 10,000 shares in a company, and the company want to issue 100,000 more shares. The shareholder may have a right to by extra 10,000 shares of the new issue.

This guarantees that old shareholder's ownership interests are not diluted.

love history [14]3 years ago
6 0

Answer:

C. protects the current shareholders against a dilution of their ownership interests.

Explanation:

Preemptive rights are rights given to shareholders in an organization allowing them to buy additional shares in any future issue in order to maintain their percentage ownership, before the shares are available to the general public. It guards against dilution or decrease in a shareholders stake or ownership interest buy allowing them buy more shares for future issues before it is available for the general public to own shares. In doing so, shareholders avoid involuntary dilution.

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Having some clients who are less knowledgeable about investing and seem to be more trusting of their firm, the management of a f
xxMikexx [17]

Answer:

The correct answer is b) a Ponzi scheme.

Explanation:

The Ponzi Scheme is a fraudulent investment operation that involves paying investors interest obtained from the money of new investors (and not from the generation of genuine profits). It is a pyramidal system, in which the only way to share benefits requires that participants recommend and capture (refer) to more clients with the objective that new participants produce benefits to primary participants.

This system does not invest in financial or other instruments, it only redistributes money from some investors to others, so the system works only if the number of investors in the pyramid continually grows; once people stop entering the "business", the scammer is prevented from fulfilling his promise and the pyramid collapses

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3 years ago
What is the major difference between corporations and other kinds businesses?
BartSMP [9]

Answer:

A corporation is a separate entity apart from that of the owners. A corporation is not responsible for its debts if it fails. A corporation is much larger than other kinds of businesses.

Explanation:

6 0
3 years ago
Read 2 more answers
Suppose the United States is currently producing 200 tons of hamburgers and 60 tons of tacos and Mexico is currently producing 4
4vir4ik [10]

Answer:

Explanation:

United States is producing 200 tons of hamburgers and 60 tons of tacos.

United States' opportunity cost for producing 1 ton of hamburgers

= \frac{60}{200}

= 0.3

United States' opportunity cost for producing 60 tons of tacos.

= \frac{200}{60}

= 3.33

So we see that US has a lower opportunity cost in producing hamburgers, so it has a comparative advantage in producing hamburgers.

Mexico is producing 40 tons of hamburgers and 50 tons of tacos.

Mexico's opportunity cost of producing a ton of hamburgers

= \frac{50}{40}

= 1.25

Mexico's opportunity cost of producing a ton of tacos

= \frac{40}{50}

= 0.8

So we see that Mexico has a lower opportunity cost in producing tacos, so it has a comparative advantage in making tacos.

Since US specializes in making hamburgers, it will produce 200 tons of hamburgers and 0 tons of tacos.

Mexico specializes in making tacos, it will produce 50 tons of tacos and 0 tons of hamburgers.

5 0
3 years ago
What are some characteristics of an informal group?
Nana76 [90]

Answer:

Hajj and Umrah packages which are not

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3 years ago
Umbridge Purses Unlimited sells purses with a sales price of $35 each. Each purse costs the company $20 to produce, and the stor
aivan3 [116]

Answer:

Break-even point in units= 20,000 units

Explanation:

Giving the following information:

Selling price= $35

Unitary variable cost= $20 t

Total fixed cost= $300,000

<u>To calculate the break-even point in units, we need to use the following formula:</u>

<u></u>

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 300,000/ (35 - 20)

Break-even point in units= 20,000 units

3 0
3 years ago
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