Question

Shareholders are the owners of a company.

• A. True
• B. False

Answer 1

The correct option is A True

A shareholder, commonly referred to as a stockholder, is any person, company, or institution that owns at least one share of a company’s stock. Because shareholders are a company's owners, they reap the benefits of the company's successes in the form of increased stock valuation. If the company does poorly and the price of its stock declines, however, shareholders can lose money.

Although they are owners of the company, shareholders do not manage operations. A board of directors is appointed to govern the activities and operations of the company.