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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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When establishing an ad campaign in a foreign country, what does the difference in currency exchange rate affect the most?
pentagon [3]

Answer:

Option A. The cost structure of the ad campaign

Explanation:

The reason is that the currency exchange rate effects the transactions of money from home to foreign or foreign country to home country. So the option with money transaction is option A.

The rest of the options are planning and are things that are not associated with the foreign transactions. So the remainder options are not the one which will be effected by the currency exchange rate.

4 0
3 years ago
Which act prohibits an employer from paying an employee of one gender less money than an employee of the opposite gender where t
solniwko [45]

Answer:

Equal pay act

Explanation:

The equal pay act refers to that act in which the men and women are treated equally and therefore they give equal pay for doing the work. Also, in the united states, it prohibits gender-based discrimination.

Therefore in the given case since the requirement of the job is equivalent to the skills, effort, duties, responsibilities and contains the similar working conditions but it would prohibited the case of not following the equal pay due to the difference in gender

so this is a case fo equal pay act

6 0
3 years ago
Which of the following is not an advantage of participative budgeting? a.It encourages budgetary slack. b.It tends to lead to a
Crank

Answer:

A. It encourages budgetary slack.

6 0
4 years ago
JCS Incorporated experienced the following transactions during its first year of business. The company purchased $16,000 of merc
12345 [234]

Answer:

46.67%

Explanation:

Gross margin is the ratio of gross profit to the total sales. The gross profit is the difference between the sales and cost of goods sold. Other cost given such as land and selling and distribution cost make up assets and  operating expenses respectively.

Hence

Gross profit = $30,000 - $16,000

= $14,000

Gross margin = $14,000/$30,000

= 0.4667

The company's gross margin is 46.67%.

4 0
3 years ago
Which of the following is a service business?
creativ13 [48]

Answer:

travel agency

Explanation:

as service businesses include <u>companies engaged in transport</u>, food service, distribution, retail, and other industries that sell services rather than products. These intangibles provide the primary revenue source for service businesses.

4 0
3 years ago
Read 2 more answers
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