Which entity or individual hires professionals to run daily operations but retains ownership?

The choice referring to the individual or entity that hires professionals to manage daily operations while still maintaining ownership relates to the role of a shareholder in a corporation. Shareholders own shares of the company, giving them ownership rights, but they typically do not get involved in the day-to-day management. Instead, they elect a board of directors who are responsible for making major decisions and hiring executive management to handle the operational aspects of the business.

In this structure, the shareholders' primary function is to invest in the company and benefit from its profits, while the operational responsibilities are delegated to professional managers. Promoters, directors, and managers all play different roles. For instance, promoters are often involved in the initial setup of the business and may be instrumental in forming the corporation, but they do not inherently have ownership rights unless they are also shareholders. Managers execute the operational strategy but lack ownership and decision-making power regarding the broad direction of the company.

Consequently, the definition of a shareholder in this context appropriately captures the essence of someone who retains ownership while hiring others to handle the daily functions of the business.