Business owners, or shareholders, are parties who own shares in the company. They may be individuals, companies, or governments. When they buy company shares, they are entitled to the company’s assets and profits.
Some owners appoint managers to run businesses. They expect managers to work for their interests.
Other shareholders, especially the majority shareholders, like to run the company directly. For example, they are on the board of directors.
The interests of business owners
In general, the owner has an interest in:
- Profit. They expect the company to distribute some profits as dividends.
- Value of the business. Growing business drives share prices higher. When they sell, they get capital gains.
The owner can influence the way the business operates influences crucial decisions such as changing management. They can also increase or decrease stock investment in companies, as a reaction to their performance.