Corporations are allowed to deduct interest payments as expenses. Corporations are not allowed to deduct dividend payments to stockholders as an expense. The differential tax treatment of interest payments and dividend payments encourages firms to use debt in their capital structure.
A shareholder (within the u.s.a. frequently known as stockholder) of a business enterprise is an individual or prison entity (consisting of any other enterprise, a frame politic, a trust or partnership) that is registered with the aid of the corporation because the felony owner of stocks of the share capital of a public or private business enterprise. Shareholders may be referred to as members of a business enterprise. someone or criminal entity will become a shareholder in a employer whilst their call and different details are entered within the corporation's register of shareholders or contributors,[1] and unless required by means of law the business enterprise is not required or accredited to investigate as to the useful possession of the stocks. A agency typically cannot own stocks of itself.
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