Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

12. Stockholders' Equity

Characteristics of a Corporation

Financial Accounting

12. Stockholders' Equity

Characteristics of a Corporation

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Multiple Choice

If a corporation has only one class of stock, it is referred to as:

a corporation with common stock only

a dual-class corporation

a preferred stock corporation

a limited liability corporation

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Verified step by step guidance

Understand the concept of stock classes: Corporations can issue different classes of stock, such as common stock and preferred stock. Common stock represents ownership in the company and typically includes voting rights, while preferred stock provides priority in dividend payments but often lacks voting rights.

Identify the term 'one class of stock': If a corporation has only one class of stock, it means it does not issue multiple types of stock, such as preferred stock or other specialized classes.

Recognize the definition of common stock: Common stock is the most basic form of stock issued by a corporation. It represents equity ownership and is typically the default class of stock for corporations with only one class.

Eliminate incorrect options: A dual-class corporation issues more than one class of stock, so this option is incorrect. A preferred stock corporation would primarily issue preferred stock, which is not the case here. A limited liability corporation (LLC) is a different business structure and does not issue stock.

Conclude that the correct answer is 'a corporation with common stock only,' as this accurately describes a corporation with only one class of stock.