Which company type is owned by stockholders who receive taxable corporate dividends?

The correct choice is stock companies because they are defined as insurance companies that are owned by shareholders. These stockholders invest in the company and, in return, are entitled to receive dividends, which are distributed from the company’s profits. These dividends are considered taxable income for the shareholders, which is a key characteristic of stock companies.

In contrast, mutual companies are owned by policyholders rather than stockholders, and any profits are typically returned to the policyholders in the form of dividends or reduced premiums, not taxable corporate dividends. Fraternal benefit societies are non-profit organizations that also do not distribute dividends like stock companies do. Reciprocals are unincorporated organizations where the members provide insurance to one another and do not operate for profit in the same way that stock companies do. Hence, stock companies uniquely fit the description of being owned by stockholders who receive taxable corporate dividends.