Conversion rights a. allow investors to convert to a different class. b. establish whether shareholders are entitled to dividends. c. are designed to prevent dilution of a shareholder's ownership in the company. d. specify the order in which classes of stockholders are paid upon dissolution.

a.allow investors to convert to a different class.

Explanation:

Conversion rights of a shareholder allows him to convert preferred shares to ordinary shares. This is important as it is used to calculate other rights of shareholders. Calculation involves use of the outstanding number of company shares as a on as converted basis. This means that when calculating total number of shares we also consider the number of shares preferred stock will be converted to.

There are two types of conversions.

The mandatory conversion involves mandatory conversion of preferred shares to ordinary shares on occurrence of some events.

Optional conversion is when the shareholders willing convert their shares because it is advantageous to them.

the definition of a small business is an independently owned and operated company that is limited in size and in revenue depending on the industry. a local bakery that employs 10 people is an example of a small business. a manufacturing facility that employees less than 500 people is an example of a small business.