Discuss the differing corporate ownership roles and their impact on corporate

governance.

What will be an ideal response?

A public firm is one that has sold shares to the general investing public. How those publicly traded shares are
dispersed and traded in the stock market varies significantly. Some firms have a few select owners who control
significant stakes in the firm. These parties have significant voting power and, therefore, can have significant
influence and control over the firm's strategy and governance. Usually, the presence of strong owners minimizes
agency problems. However, the presence of a powerful owner does not remove all agency problems. One specific
type of problem arises when a single powerful owner uses that power to extract private benefits from the company
at the expense of other, less powerful owners.