Reference no: EM132972181

Problem 1: The pre-emptive right, or the right of first refusal, of a common shareholder is the right to

Select one:

a. share proportionately in corporate assets upon liquidation

b. exclude preferred shareholders from voting rights

c. share proportionately in any new issues of shares of the same class

d. prevent a director of a company from voting at the company's annual general meeting

e. receive cash dividends before they are distributed to preferred shareholders

Problem 2:  In which of the following instances would a company most likely choose the carryforward option for a net operating loss?

Select one:

a. The company expects lower cash balances in the future compared to the past.

b. The company expects lower earnings in the future compared to the past.

c. The company expects higher losses in the future compared to the past.

d. The company expects lower tax rates in the future compared to the past.

e. The company expects higher tax rates in the future compared to the past.