Who is considered an owner of a part of a business?

An investor is considered an owner of a part of a business because they provide capital in exchange for equity or a stake in the company. This ownership typically entitles the investor to a share of the profits and a degree of influence or decision-making power in regard to the company's operations, depending on the amount of ownership they hold. Investors are motivated to see the business succeed, as this directly impacts their return on investment.

While a manager may have significant decision-making authority and be involved in the daily operations of the business, they do not typically hold ownership unless they have also invested capital. Employees, on the other hand, work for a salary or wages and do not possess ownership rights unless they have received stock options or some equity participation. A consultant provides expertise and advice but does not own a part of the business; they are hired for their knowledge without any stake or financial commitment to the company.