Who are the owners of a corporation who elect the board of directors?

• A. Stockholders
• B. Directors
• C. Officers
• D. Employees

Answer: (A)

In a corporation, ownership rests with the stockholders—those who hold shares. They have the voting rights to elect a board of directors who represent the owners and oversee management. The board, once elected, hires officers to run the company’s daily operations and set policy. Employees may work for the company, but ownership and the power to elect governance lie with the stockholders. Therefore, the owners who elect the board are the stockholders.