Who are the owners of a corporation as a result of their purchase of shares?

The owners of a corporation as a result of their purchase of shares are known as shareholders. Shareholders invest in a corporation by buying shares, which represent a portion of ownership in the company. This investment gives them certain rights, including the ability to vote on key corporate matters, such as electing the board of directors and approving significant corporate policies. In essence, shareholders are the ones who have a financial stake in the company and, as such, benefit from its success through dividends and potential appreciation of share value.

Franchisees and franchisors refer to participants in a franchise business model, where a franchisor grants the right to use its brand and business model to a franchisee. Partners typically refer to individuals in a partnership, which is a different organizational structure than a corporation. Therefore, the correct identification of owners in a corporate setting aligns perfectly with the definition of shareholders.