What is the difference between a shareholder and a partner?

A shareholder of a business is anyone who holds stock in the company. They are the owners of the company, and all profits and losses are shared among them. Shareholders do not need to actively participate in the day-to-day operations of the business, but may still benefit from it. On the other hand, a partner is an individual who takes an active role in running the business. Partners make decisions and manage the business, though they do not necessarily own all of the business. A partner does not own stock and does not share in the profits and losses of the business. Instead, a partner earns a share of the profits, or a salary, in exchange for their work. In short, the main difference between a shareholder and a partner is that a shareholder is an owner and a partner is an employee. Shareholders share in the profits and losses of the business, while partners only earn a salary in exchange for their work and do not share financial responsibility. Both are important contributors to a business, but in different ways.

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