Unit 5 Review - The pre-emptive right of a common...

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The pre-emptive right of a common stockholder is the right to ___________. (Points: 1) share proportionately in corporate assets upon liquidation share proportionately in any new issues of stock of the same class receive cash dividends before they are distributed to preferred stockholders exclude preferred stockholders from voting rights 2. In a corporate form of business organization, legal capital is best defined as (Points: 1) the amount of capital the state of incorporation allows the company to accumulate over its existence. the par value of all capital stock issued. the amount of capital the federal government allows a corporation to generate. the total capital raised by a corporation within the limits set by the Securities and Exchange Commission. 3. Stockholders of a business enterprise are said to be the residual owners. The term residual owner means that shareholders (Points: 1) are entitled to a dividend every year in which the business earns a profit.
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