The true owners of the corporation are the
A) holders of debt issues of the firm.
B) preferred stockholders.
C) board of directors of the firm.
D) common stockholders.

Question

Quizplus · Accepted Answer

Common stockholders are the true owners of the corporation. They have the right to elect the board of directors and vote on major decisions, as well as receive dividends and capital gains from the appreciation of their shares. Debt holders and preferred stockholders have a claim on the company's assets but do not have the same level of ownership as common stockholders. The board of directors is responsible for overseeing the management of the company but does not technically own the corporation.

The True Owners of the Corporation Are the