What is a corporation primarily owned by?

What is a corporation primarily owned by?

• A. Employees
• B. Single owners
• C. Stockholders
• D. Partnerships

Answer: (C)

A corporation is primarily owned by stockholders, who are individuals or entities that purchase shares of the company's stock. When people buy stock in a corporation, they own a piece of that company and have a claim on its assets and earnings. This ownership structure enables corporations to raise capital for growth and operations by selling shares, allowing for wider investment and potential expansion. Stockholders have the right to vote on key corporate matters, such as electing the board of directors and approving significant transactions. This structure distinguishes corporations from other business forms, such as sole proprietorships or partnerships, where ownership is typically more concentrated. The role of stockholders in governance and decision-making is crucial, providing a checks and balances system within the corporate framework.

A corporation is primarily owned by stockholders, who are individuals or entities that purchase shares of the company's stock. When people buy stock in a corporation, they own a piece of that company and have a claim on its assets and earnings. This ownership structure enables corporations to raise capital for growth and operations by selling shares, allowing for wider investment and potential expansion.

Stockholders have the right to vote on key corporate matters, such as electing the board of directors and approving significant transactions. This structure distinguishes corporations from other business forms, such as sole proprietorships or partnerships, where ownership is typically more concentrated. The role of stockholders in governance and decision-making is crucial, providing a checks and balances system within the corporate framework.