Question

If a corporation has only one class of stock, the account is entitled Common Stock or a.Owners' Stock. b.Preferred Stock. c.Capital Stock. d.Member Stock.

Answer 1

Answer:

c. Capital Stock.

Explanation:

The Common stock is also known as Capital stock if a corporation has only one class of stock. Common stock gives voting rights to its shareholders while preferred stock does not give voting rights. Capital stock gives shareholders an ownership position in the company. It gives rights and powers to shareholders. Investors buys this stock for a regular stream of dividend income as well as earn capital gains in the end when they sell the stock.