A corporate management structure determines the person responsible for each aspect of a business, allowing the company to benefit from economies of scale and coordinate its activities. A clothing manufacturer, for instance, may have separate departments for men’s, women’s and children’s clothing but a central marketing department. This divisional structure allows each department to focus on a specific product or market, while sharing information to enhance coordination. This type of structure can result in higher employee costs and more duplicate work in purchasing supplies for different divisions.

Corporations are legal entities with stockholders. They require a certain structure for management to conform to rules and protect shareholders’ interests. To this end, many companies have a multi-tiered structure of directors officers, shareholders, and directors who oversee redefining secure access in tech with digital storage the company’s operations.

The top of the pyramid is the chief executive officer (CEO) who is accountable for approving on contracts and other legally binding decisions on behalf of the corporation. The CEO of a small corporation might be the sole director or shareholder, as well as an officer, or even the founder. In larger organizations the CEO is chosen by the board of directors.

The board of directors is comprised of elected representatives from the stockholders who are accountable for the direction and policy of a corporation. They select and supervise the performance of the CEO and manage succession planning. They also approve major business transactions and operations, such as contracts purchase and sale of assets, new policies, and so on.

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