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An ownership structure concerns the internal organization of a business entity and the rights and duties of the individual holding the equitable or legal interest in that business. For instance, a shareholder who is also the owner of a corporation has certain rights.
Some are owned by just one person or a small group of people, some are owned by large numbers of shareholders, some are owned by charitable foundations or trusts, and some are even owned by the state. Different ownership structures overlap with different legal forms that a business can take.
In theory, ownership structure is one of the important factors affecting firm performance. ing to the agency theory, separation of ownership and management causes costs, which detract firms from optimal performance and maximum potential shareholder value, which is the main purpose of firms.
10 common types of business ownership Sole proprietorship. A sole proprietorship is owned and operated by one individual. Partnership. Limited liability company. Private corporation. Cooperative. Nonprofit corporation. Benefit corporation. Close corporation.
Ownership structure can be divided into two independent variables: ownership concentration and ownership identity.
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Ownership structures are of major importance in corporate governance because they affect the incentives of managers and thereby the efficiency of the firm. The ownership structure is defined by the distribution of equity with regard to votes and capital but also by the identity of the equity owners.
A companys ownership structure looks at who owns the respective company. Those with private structures can control who buys and sells shares. Companies with public ownership can have public investors buy and sell shares on the open market. Ownership structure can impact how companies make decisions.
Check public records Since many states require businesses to file annual reports or other disclosures with the Secretary of States office, these documents may also provide vital information about a companys ownership structure, as well as its financial performance, and other important details.

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