According to the business principles, what is the primary role of shareholders in a corporation?

The primary role of shareholders in a corporation is to invest in and own part of the corporation. Shareholders provide the capital that companies need to operate and grow, and in return, they own shares of the company, which entitle them to a portion of the profits and a say in certain company decisions through voting rights. This ownership reflects their investment risk in the corporation's performance, meaning they benefit when the company does well and may incur losses if it does poorly.

In contrast to managing daily activities or making legal decisions, which are typically the responsibilities of the company's management and board of directors, shareholders focus on their investment interests. Their involvement is primarily financial rather than operational, making their role foundational to the corporate structure. Shareholders may also influence corporate governance through the election of board members, but their main function is to provide ownership and uphold the interests of their investment.