Which ownership structure is controlled by stockholders?

A corporation is an ownership structure that is controlled by stockholders. In this model, stockholders own shares of the company, which gives them a degree of control through voting rights, particularly in decisions affecting the company’s governance and management. This structure allows for raising capital through the sale of stock, effectively distributing ownership among many individuals or entities. When decisions need to be made, such as electing the board of directors or approving major changes, stockholders usually vote based on the number of shares they own, making their influence aligned with their investment in the company.

In contrast, a partnership involves two or more individuals working together, who may share profits, losses, and management responsibilities without the structure of shareholder ownership. A sole proprietorship is owned and managed by a single individual, with no separation between personal and business assets. A cooperative is typically owned and operated for the mutual benefit of its members, who are its customers, rather than being solely focused on capital investment and profit maximization like a corporation.