Final answer:
A corporation is owned by shareholders who buy stock in the company and become owners. The shareholders elect a board of directors to manage the corporation.
Step-by-step explanation:
A corporation is a business that is owned by shareholders. Shareholders have limited liability for the company's debt but share in its profits and losses. When a person buys stock in a corporation, they become an owner or shareholder of the company. Stock represents firm ownership and is divided into shares. The shareholders elect a board of directors to hire top management and make important decisions for the corporation.