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Home Knowledge

What are the Basics of Corporate Structure?

The top of most management teams has at least a Chief Executive Officer (CEO), a Chief Financial Officer (CFO), and a Chief Operations Officer (COO).

India CSR by India CSR
October 20, 2022
in Knowledge
Reading Time: 3 mins read
Photo Credit: iStock

Photo Credit: iStock

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The first type involves inside directors chosen from within the company. This can be a CEO, CFO, manager, or any other person who works for the company daily.


The most common corporate structure in India consists of a board of directors and the management team. Board of directors most often include inside directors, who work day-to-day at the company, and outside directors, who can make impartial judgments.

The top of most management teams has at least a Chief Executive Officer (CEO), a Chief Financial Officer (CFO), and a Chief Operations Officer (COO). Elected by the shareholders, the board of directors is made up of two types of representatives.

The first type involves inside directors chosen from within the company. This can be a CEO, CFO, manager, or any other person who works for the company daily. Corporate governance is one of the main reasons that these terms exist. The evolution of public ownership has created a separation between ownership and management.

Before the 20th century, many companies were small, family-owned and family-run. Today, many are large international conglomerates that trade publicly on one or many global exchanges. In an attempt to create a corporation in which stockholders’ interests are looked after, many firms have implemented a two-tier corporate hierarchy. On the first tier is the board of governors or directors: these individuals are elected by the shareholders of the corporation.

From the Book – ‘ Know Everything about Corporate Social Responsibility ‘

Available on Amazon.in

Also Read:

  • What is Industry?
  • What is Business?
  • What is a Business Organisation?
  • What is Corporate?
  • What is a Startup?
  • Who are the Stakeholder?
  • What is a Multinational Corporation?
  • What is Competitive Advantage?
  • What is Foreign Investment?
  • What is Economic Reform?
  • What is Industrial Reform?
  • How are the Reforms and Fiscal Policies Linked?
  • How does Growth Impact Employment?
  • What is a Labour Market?
  • What is Humanistic Management?
  • What is the Public Enterprise?
  • What is a Private Firm?
  • What is Family Owned Business?
  • What is Corporate Financial Performance?
  • What is Profit?
  • What is Bottom of the Pyramid?

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