Final answer:
Shareholders claim to a company's resources because they provide essential capital for the company and have limited liability. They expect returns on investment through dividends and stock appreciation, while company decisions are made by a board of directors elected by the shareholders.
Step-by-step explanation:
When considering the reasons for owners' claims to a company's resources by shareholders, there are two main points to be discussed:
- Shareholders provide a company with capital through the purchase of stock, thus they have a claim to a portion of the company's assets and earnings. Shareholders invest in the corporation and, in return, expect to receive dividends or to gain from an increase in the stock's value.
- The limited liability nature of shareholders' investment means their risk is restricted to the amount of their investment. This allows them to claim a part of the company's resources without the risk of personal losses beyond their initial capital input. They are entitled to a return on investment within the confines of this limited liability.
A corporation obtains money from its sale of stock during an initial public offering (IPO) or through subsequent equity offerings. The rate of return is not explicitly promised but is expected through dividend payments and potential stock price appreciation. Decision-making typically falls to the board of directors and executive management, who are elected and overseen by shareholders.