A corporate management structure identifies the individuals responsible for different areas of a business which allows the company to profit from economies of scale as well as coordinate activities. For example the clothing manufacturer may have separate departments for men’s as well as women’s wear, 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 kind of structure could result in higher employee costs and more duplication like when purchasing items for different divisions.

Corporations are legal entities that have shareholders. They require a certain management structure to comply with regulations and protect stockholders’ interests. The majority of corporations have a multi-level system consisting 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 on behalf of the corporation. A small corporation’s CEO might be the sole founder, director, officer or shareholder, in larger companies they are appointed by the board of directors.

The board of directors is comprised of elected representatives representing the stockholders who are accountable for the direction and policy scalable solutions for growing businesses with VDR technology of a corporation. They select and supervise the performance of the CEO and handle succession planning. They also approve major business transactions and actions, such as contracts as well as asset purchases and sales policies, new policies, so on.