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

• A. a corporation with common stock only
• B. a dual-class corporation
• C. a preferred stock corporation
• D. a limited liability corporation

Answer: (A)

Verified step by step guidance

1. 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.
2. 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.
3. 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.
4. 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.
5. Conclude that the correct answer is 'a corporation with common stock only,' as this accurately describes a corporation with only one class of stock.