Answer:
Preemptive rights
Explanation:
Preemptive rights are a way of preventing the dilution of a shareholder's ownership in a corporation. Preemptive rights are set by a contract clause that establishes that in case the corporation issues new stock, then a current shareholder must be given the right to buy additional shares before the stocks are sold to other investors.
The preemptive right usually gives the stockholder the right to buy new stock in the same proportion as his/her current stock ownership. For example, if an investor currently owns 2% of the company's stock, he/she will be able to buy 2% of every new set of stocks issued.
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In a decision to either sell as is or process a product further, joint costs are considered irrelevant and process further costs are considered relevant.
The decision of whether to sell the product right away or wait to sell it in order to earn more money. Although we think that growing the business's income is great, we also need to make sure that the costs associated with the growth will be met. We must contrast the profit margin between selling now and selling later because additional processes will demand more resources and expenses.
Additionally, we need to make an effort to maximise the return on our investment. Additional processes might need more money spent on equipment. These factors require us to apply the sell or process further technique in order to choose the best course of action.
Typically, this scenario occurs in a joint product where one or more outputs can be generated and produce additional revenue. The joint products are produced at the same cost up until the point where they are divided and further sold or processed. Although the products can be sold at the split point, there are instances when continuing developing them is more profitable.
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The industry that is the most recent target of deregulation is the "electric utility industry".
Electric deregulation is the way toward changing tenets and directions that control the electric industry to give clients the decision of power providers who are either retailers or dealers by permitting competition. Deregulation gives purchasers a choice with regards to their energy provider.