An ordinary corporation is typically owned by investors who are not customers and is controlled on what basis?

• A. Investors who are not customers and controlled on a 1 share, 1 vote basis
• B. Customers who vote by loyalty program
• C. Employees who vote by salary level
• D. The government under central planning

Answer: (A)

Ownership determines who controls an ordinary corporation. Investors who buy stock become owners, while customers typically do not have governance rights unless they own shares. Voting power usually follows ownership, meaning each share gives one vote, so those with more shares have more influence over electing directors and major decisions. This setup aligns financial risk and reward with decision-making influence. Other ideas—customers voting by loyalty, employees voting by salary level, or government control under central planning—don’t fit how ordinary corporations are run in market economies, where control is based on ownership by investors.