The article analyzes how firms are created and their boundaries from the perspective of stakeholders. It shows that stakeholders make choices that determine the type of contracts a firm will have and who will own it. The stakeholders who own the firm then decide on control rights and income distribution. The study uses inequalities deduction to derive feasible and protocol sets for these decisions. By examining real-world examples, the paper discusses ownership and operational boundaries. Overall, the research introduces a new theory on how stakeholders shape firms and suggests practical applications for this approach.