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Commerce · Q892

Financial Management

Graduate and Post Graduate · Commerce · question 892

Q892

Pre-emptive right of common stockholders are necessarily included in company

A.
laws
B.
purchase chart
C.
corporate charter
Answer
D.
selling charter

Answer: Option C

Solution

Answer: Option C
Solution:
Pre-emptive right of common stockholders are necessarily included in company corporate charter. A corporate charter sets forth a corporation's basic information, its location, profit/ nonprofit status, board composition, and ownership structure.