If a company raises money by issuing new stocks, a current shareholder has the right to purchase new shares on a pro rata basis (can keep the same percentage interest in the company). This provision in a companyâs bylaws is called the:

a. Proxy fight
b· IPO Provision
c. percentage right
d. preemptive right

The correct answer is letter "D": preemptive right.

Explanation:

A Preemptive Right allows select shareholders to purchase newly issued shares in their corporation before the general public. The situation arises when the company issues more shares on top of the issued at the Initial Public Offering (IPO). Therefore, as there will be more outstanding shares the ownership percentage of the stakeholder would be decreased.

The preemptive right allows those shareholders to purchase the recently issued shares before the public in an attempt of keeping their same ownership percentage.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know