In a corporation, who are the ultimate owners?

In a corporation, the ultimate owners are the stockholders. This is because stockholders purchase shares of the company, which represent ownership in the corporation. Each stockholder has a claim to the corporation’s assets and profits proportional to their ownership stake. This ownership structure is fundamental to how corporations operate, as it separates the day-to-day management from ownership rights.

While managers are responsible for making operational decisions and employees contribute to the daily functions of the business, they do not have ownership stakes in the corporation unless they also hold shares. Franchisees operate under a different business model where they pay for the right to operate a brand but do not own the corporation itself. Thus, stockholders hold the ultimate authority in the company, influencing key decisions through their voting rights at shareholder meetings.