A corporate management structure identifies the person responsible for each aspect of a company, allowing the company to reap the benefits of economies of scale and coordinate its activities. A clothing manufacturer, for example, may have separate departments for women’s, men’s and children’s clothes however, it has a central marketing department. This divisional online data room: empowering remote collaborations securely structure allows each department to concentrate on a specific product or market, while sharing information to improve coordination. This type of structure can result in higher employee costs and also more duplication, such when purchasing supplies for different divisions.
Corporations are legal entities that have stockholders. They require a specific management structure in order to conform to laws and protect the interests of stockholders. Most companies have a multi-level system of officers, directors and shareholders, who oversee the business’s operations.
The top of the pyramid is the chief executive officer (CEO) who is responsible for signing off on contracts and other legally binding decisions for the corporation. The CEO of a small-sized company may be the sole director or shareholder, as well the officer, or even the founder. In larger companies, the CEO is appointed by the board of directors.
The board of directors consists of elected representatives of the stockholders who oversee the overall direction and policy of the corporation. They select and supervise the performance of the CEO and manage succession planning. They also approve important business transactions and activities such as contracting, asset purchase and sales as well as new policies, etc.