Question

4 - types of corporations

learning objective: contrast corporate ownership and types of corporations.

who are the legal owners of a corporation?

a.) corporate officers
b.) board of directors
c.) shareholders
d.) employees

Explanation:

Identify corporate structure

A corporation is a distinct legal entity separate from its creators. Under Types of Business Ownership, ownership is represented by shares of stock.

Define legal owners

The individuals or entities that hold these shares are called shareholders (or stockholders). They are the legal owners of the corporation.

Distinguish other roles

• Corporate officers manage daily operations.
• The board of directors represents shareholders and sets policy.
• Employees perform the operational work.

Answer:

• a.) Corporate officers
• b.) Board of directors
• c.) Shareholders (Correct answer)
• d.) Employees