1. Rights and privileges of common stockholders Larry Nelson holds 1,000 shares of General Electric (GE) common stock. As a stockholder, he has the right to be involved in the election of its directors, who are responsible for managing the company and achieving the company's objectives. True or False: Larry can invest in another company that is selling class A stocks to the public, and class B shares will be retained by company insiders. This will help the founders maintain control in the company. O False O True Larry also holds 2,000 shares of common stock in a company that only has 20,000 shares outstanding. The company's stock currently is valued at $43.00 per share. The company needs to raise new capital to invest in production. The company is looking to issue 5,000 new shares at a price of $34.40 per share. Larry worries about the value of his investment. Larry's current investment in the company is investment will be worth This scenario is an example of If the company issues new shares and Larry makes no additional purchase, Larry's Larry could be protected if the firm's corporate charter includes a If Larry exercises the provisions in the corporate charter to protect his stake, his investment value in the firm will become provision.

1. Rights and privileges of common stockholders Larry Nelson holds 1,000 shares of General Electric (GE) common stock. As a stockholder, he has the right to be involved in the election of its directors, who are responsible for managing the company and achieving the compary objectives. True or False: Larry can invest in another compary that is selfing dass A stocks to the public, and dass B shares wall be retained by company insiders. This will help the founders maintain control in the company. False True Larry also holds 2,000 shares of common stock in a company that only has 20,000 shares outstanding. The company's stock currentir is valued at $43.00 per share. The compary needs to raise new capital to invest in profuction. The company is looking to issue 5,000 new shares at a price of 534,40 per share. Larry worries about the value of his investment. Larry's current investment in the company is If the compary lisues new shares and Larry makes no additional burchase, tarry's investment wil be worth This ocenario is an examplet of Larry could be protected a the firm's corporate charter indedes a prowision. If Larry exerdises the provisions in the corporate charter to protect his stake, his inveotment value in the firm will become