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.