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35. Preemptive rights
a.allow a majority of shareholders to block proposed merger.
b.allow a majority of shareholder to call a special meeting of shareholders.
c.give shareholders a preference over other purchasers to buy a pro-rata share of a new issue of stock.
d.are available to shareholders of public companies(traded on a stock exchange) but not to shareholders of closely held corporations.
36. Watered stock
a.refers to shares of stock issued by a corporation for less than fair market value.
b.refers to worthless shares of stock.
c.is not a concept applicable to S corporations.
d.refers to a criminal act of a corporation.
37. A corporate consolidation
a.results in one corporation being the surviving corporation.
b.results in the combination of an S corporation and a regular (C) corporation.
c.results in the combination of a C corporation and a general partnership.
d.results in a new corporation.
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