Which term describes the owners of a company whose shares may be held by individuals or other organizations?

Prepare for the IB Business and Management SL Exam with flashcards and multiple-choice questions. Each question includes hints and explanations to boost your confidence and success.

Multiple Choice

Which term describes the owners of a company whose shares may be held by individuals or other organizations?

Explanation:
Ownership in a company comes from holding its shares. The people or institutions who own those shares are called stockholders or shareholders. They hold a claim on part of the business and typically have rights such as voting on the board and receiving dividends. This matches the description of owners whose shares can be held by individuals or other organizations. The other terms don’t fit: a special interest group isn’t about ownership; stakeholders is a broader group affected by the business, not necessarily the owners; Balance of Payments is an unrelated macroeconomic concept.

Ownership in a company comes from holding its shares. The people or institutions who own those shares are called stockholders or shareholders. They hold a claim on part of the business and typically have rights such as voting on the board and receiving dividends. This matches the description of owners whose shares can be held by individuals or other organizations. The other terms don’t fit: a special interest group isn’t about ownership; stakeholders is a broader group affected by the business, not necessarily the owners; Balance of Payments is an unrelated macroeconomic concept.

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