Question

People who can claim an organization as their legal property are called?

1) owners
2) the board of directors
3) financial institutions
4) customers
5) employees

Answer 1

Owners

Step-by-step explanation:

People who can claim an organization as their legal property are called owners.

In a public company, shareholders own the company. Shareholders are individuals who have invested capital and own a share of the corporation. They have the right to vote for a board of directors, who then hire top executives to run the company on a day-to-day basis.

For example, when a firm decides to sell stock, it becomes a public company, and the shareholders, who may consist of thousands or millions of investors, have the authority to choose the company managers through their voting rights.