When you scan the giant corporation, it may look as if it is running profitably. Daily function has no discernible problematic activity. However, confusion can ensue if there is not a well-structured Corporate Business Structure. The smoothly operating business contains leadership in all divisions that maintains order.
It is general knowledge that at the top is the Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, Vice President and possibly more than one. The largest corporations have multiple Vice Presidents, one for each division.
Smaller companies were the norm until the twentieth century. They were owned by members of a family or people who were acquainted. The separation of owners and those who run the corporations is a wide gap.
Currently the large international company trades stocks and bonds on one or more exchanges. They may perform trading on more than one of the global exchanges. Small companies were much different in how they ran the operation.
There is now a two-tier corporate structure. The hierarchy is topped by the board of governors, also known as the board of directors. The shareholders, those individuals who own shares, or stock in the corporation vote them into office.
If a shareholder has the majority of stock in his or her possession, he or she is in control of how the company is run. Not one, but two types of representatives serve as directors. Officers who serve are the CEO, the COO or the CFO.
One group of representatives are called independents because they are recruited from outside the company. All directors have the responsibility of make sure the shareholders have their interests protected. Usually multiple directors are serving.
Basically, the Corporate Business Structure contains the executives and directors at the top. They run the giant corporation on behalf of the stockholders. If the stockholders are dissatisfied with their performance, they can vote them out of office at the next election.
It is general knowledge that at the top is the Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, Vice President and possibly more than one. The largest corporations have multiple Vice Presidents, one for each division.
Smaller companies were the norm until the twentieth century. They were owned by members of a family or people who were acquainted. The separation of owners and those who run the corporations is a wide gap.
Currently the large international company trades stocks and bonds on one or more exchanges. They may perform trading on more than one of the global exchanges. Small companies were much different in how they ran the operation.
There is now a two-tier corporate structure. The hierarchy is topped by the board of governors, also known as the board of directors. The shareholders, those individuals who own shares, or stock in the corporation vote them into office.
If a shareholder has the majority of stock in his or her possession, he or she is in control of how the company is run. Not one, but two types of representatives serve as directors. Officers who serve are the CEO, the COO or the CFO.
One group of representatives are called independents because they are recruited from outside the company. All directors have the responsibility of make sure the shareholders have their interests protected. Usually multiple directors are serving.
Basically, the Corporate Business Structure contains the executives and directors at the top. They run the giant corporation on behalf of the stockholders. If the stockholders are dissatisfied with their performance, they can vote them out of office at the next election.
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