ACC 304 All Assignments ACC 304 All Assignments | Page 37

23.
The pre-emptive right enables a stockholder to
a. share proportionately in any new issues of stock of the same class.
b. receive cash dividends before other classes of stock without the
pre-emptive right.
c. sell capital stock back to the corporation at the option of the
stockholder.
d. receive the same amount of dividends on a percentage basis as the
preferred stockholders.
S24. In a corporate form of business organization, legal capital is best
defined as
a. the amount of capital the state of incorporation allows the company
to accumulate over its existence.
b. the par value of all capital stock issued.