Final answer:
Employee ownership is where employees own the company by being stockholders, gaining a share of profits and input into company decisions.
Step-by-step explanation:
The situation in which employees own the company they work for by virtue of being stockholders is known as Employee ownership. In this business model, workers have a significant stake in the company, allowing them a share in the profits and potentially a voice in how the company is run. Companies can transition to this model by selling stock that financial investors, including employees, can buy and sell. The shareholders, which could include employees in a company-owned business, elect a board of directors to hire top management and are responsible for corporate governance.