Incorrect Question 2 0 / 0.5 pts In response to dilution of equity an investor may insist that they are automatically given new shares of equity so as to maintain their same percentage share of total equity outstanding when new shares are issued. This is known as a. a right of first refusal. b. preemptive rights. C. a ratchet. d. retained earnings. Incorrect Question 3 0 / 0.5 pts Once an investor gives funding to a new business the new business feels it can take a riskier path to profitability since it is not their money at stake. This is an example of a. the market for lemons. b. moral hazard. c. adverse selection. d. impacted information