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The Preemptive Right Refers to the Right of Common Stockholders

Question 55

Multiple Choice

The preemptive right refers to the right of common stockholders to:


A) Receive dividends before interest is paid to creditors
B) Receive assets before preferred stockholders when the corporation dissolves
C) Maintain their proportionate interests in the corporation when additional shares are issued
D) Vote on matters requiring the approval of owners
E) None of the above

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