What ownership type refers to a company owned by stockholders?

• A. Franchise
• B. Entrepreneur
• C. Restaurant Manager
• D. Corporation

Answer: (D)

Ownership by stockholders describes a corporation. A corporation is a separate legal entity whose ownership is divided into shares owned by stockholders. This structure allows the company to raise capital by selling stock, provides limited liability for its owners, and often continues even as ownership changes. Management is typically organized with a board of directors and officers, rather than running purely as an individual owner.

Other terms describe different concepts: a franchise is a licensing arrangement that lets someone operate under an established brand, not just a form of ownership; an entrepreneur is a person who starts a business; and a restaurant manager is a job title, not a way of owning a company. So the description that fits ownership by stockholders is a corporation.