Who is referred to as a person or institution owning shares in a limited company?

• A. Investor
• B. Shareholder
• C. Director
• D. Manager

Answer: (B)

A person or institution owning shares in a limited company is known as a shareholder. Shareholders are individuals or entities that contribute capital to the company by purchasing its shares, which represent ownership stakes in the business. This ownership allows them to participate in the company's profits, often through dividends, and grants them a say in key decisions, typically through voting rights at shareholder meetings.

In a limited company, the distinction of being a shareholder typically signifies a financial investment in the firm, thus aligning their interests with the company's performance. Shareholders are essential to a company's capital structure, as they provide the funds necessary for expansion, operations, and innovation. Through their voting power, they can influence significant decisions such as electing the board of directors, approving mergers, and altering company policies.

Other roles like investors may include a wider range of financial supporters who may not necessarily hold shares in the company, while directors are responsible for managing the company’s affairs, often serving as a bridge between shareholders and management. Managers typically handle the daily operations of the company but do not necessarily hold ownership through shares.