Ownership Theories

Ownership theories refer to various perspectives on who owns a business and how it should be managed. The primary theories include: 1. **Shareholder Theory**: The company exists to maximize profits for its shareholders. 2. **Stakeholder Theory**: Emphasizes the importance of all parties affected by the business, such as employees, customers, and the community. 3. **Managerial Theory**: Focuses on the role of managers as key decision-makers, with their authority and interests influencing business direction. These theories influence how companies operate, balancing profit-making with social and ethical responsibilities.