Businesses have many different stakeholders who each have a key interest in how a business operates. Stakeholders often have influence over the decisions made by business organisations.
Owners and shareholderA part-owner of a business. are the same. Shareholders are part-owners in the business.
Some owners appoint managers to run their businesses and to make profits for them. Other owners like to get involved in the day-to-day running of the firm. This can sometimes lead to disagreements between owners and managers.
Owners have an interest in a business doing well so that they:
make a profit
receive high dividendA share of the profits paid to shareholders.
Owners can influence how a business operates by:
investing or withdrawingequityOwner鈥檚 money invested in the business. into the business
changing management (at AGMAnnual General Meeting)