1. In the case that a corporation is authorized to issue one class of stock, the stock is not necessarily common stock. a) True b) False 2. When a corporation liquidates, most often preferred stockholders have priority over common stockholders as to assets. a) True b) False 3. When a corporation purchases a certain number of shares of their stock, the number of shares issued is decreased by the number of shares of the stock purchased a) True b) False