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Who must make information available to their owners, usually through an annual report to shareholders?

1) Employees
2) Customers
3) Suppliers
4) Companies

1 Answer

3 votes

Final answer:

Companies are required to disclose information to their shareholders, typically in the form of an annual report. Shareholders own part of the company and have voting rights to elect a board of directors who manages the company.

Step-by-step explanation:

Companies must make information available to their owners, usually through an annual report to shareholders. Shareholders, also referred to as stockholders, are individuals who own shares of a corporation and are entitled to a return on their investment when the company is profitable. They are different from other stakeholders such as employees, customers, and suppliers, who may have a vested interest in the company's operations but do not own shares. Public companies, which sell stock to financial investors, are owned by shareholders who vote for a board of directors to make decisions and oversee the management of the company.

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