What term is used to refer to individuals who own shares in a corporation?

Test your knowledge of Aviation Law. Utilize flashcards and multiple choice questions with hints and explanations to excel in your exam preparation.

The term used to refer to individuals who own shares in a corporation is "shareholders." Shareholders are the owners of shares in the equity of a company, which entitles them to a portion of the company's profits, voting rights on corporate matters, and a claim on assets in the event of liquidation. Their ownership reflects a direct investment in the company, and they benefit from the company's success through dividends and appreciation of stock value.

While stakeholders encompass a broader group that includes anyone with an interest in the company—such as employees, customers, suppliers, and shareholders—shareholders specifically denote those who have a financial stake through share ownership. Partners typically refer to individuals who are part of a business partnership, which is a different legal structure than a corporation. Investors is a general term that can apply to anyone who invests money, which may include shareholders, but it does not specifically denote ownership of shares within a corporation.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy