A Level Economics AQA Practice Exam

Who are considered shareholders in a company?

1. Employees of the company

2. Individuals or groups who own part of a company

3. Customers who frequently purchase products

4. Managers responsible for overall business strategy

The correct answer is: Individuals or groups who own part of a company

Shareholders are individuals or groups who own part of a company by holding shares, which represent a portion of the company's ownership. They have a financial stake in the company and, as a result, they are entitled to a portion of the company's profits, typically in the form of dividends, and to vote on certain company matters, such as electing the board of directors. This relationship means that shareholders have a direct interest in the company's performance and governance. The other options do not define shareholders. Employees of a company may have interests in the company, especially if they are offered shares or stock options, but they are not automatically considered shareholders unless they actually own shares. Customers, while important to the business, do not have ownership stakes and therefore are not shareholders. Similarly, managers could be shareholders if they own shares in the company, but their managerial role alone does not qualify them as shareholders without ownership of shares. Thus, the correct answer accurately reflects the definition of shareholders in a company context.