A shareholder’s preemptive rights refers to a right to…

5. A shareholder’s preemptive rights refers to a right toA. purchase a proportionate share of every new share offering by the company.B. preempt the board of director’s decisions if they’re not supported by a majority of shareholders.C. share in any profits insiders made from insider trading.D. receive dividends out of profits before profits are used for any other purpose.7. The primary difference between general partnerships and limited partnerships is the limiting of theA. partners’ liability.B. number of agents.C. partners’ profit.D. number of partners.8. Bob is the CEO of Realty, Inc., a company that purchases and develops property for shopping centers.Bob learns that certain real estate, which would be excellent for a shopping center, is about to go up forsale. Bob purchases the property himself without telling anyone at the corporation. Bob has violated theA. fairness rule.B. insider trading rule.C. business judgment rule.D. corporate opportunity doctrine.10. In a/an _______, a group of shareholders purchases a controlling portion of the stock in a corporation.A. consolidationB. asset acquisitionC. mergerD. leveraged buyout13. Under the Revised Uniform Partnership Act,A. partners don’t have transferable economic interests.B. partnership property is owned by the partnership.C. the partnership is an aggregate rather than an entity in its own right.D. partners are co-owners of partnership property.15. Robert owns shares in Products, Inc., and suspects that Zach, one of the directors of the company, hasbeen stealing corporate assets. Robert complains to the corporation, but no action is taken. Robert shouldfile aA. derivative suit against Products, Inc., on his own behalf.B. direct suit against Zach.C. derivative suit against Zach on behalf of Products, Inc.D. direct suit against Products, Inc.18. Tom is president of Big Drug, Inc. Tom receives a phone call from a federal agency informing him thata new drug owned by Big Drug will be approved for sale to the public. Tom knows that this drug will bevery popular and will cause a significant increase in the company’s profits. Tom quickly purchases as muchBig Drug stock as he can afford. Then, when the federal agency formally announces approval of the drug,Big Drug stock triples in value, and Tom becomes rich. Tom has violated theA. fairness rule.B. business judgment rule.C. corporate opportunity doctrine.D. insider trading rule.