Describe a typical corporate structure in terms of shareholders, managers and stakeholders.

Expert Solution

With the change in In corporate world the structural changes as also occurred. This has led to some confusion in the hierarchy of a corporation. Earlier the corporations used to be family-owned and were not majorly concerned about outsiders. But in today's corporate world stakeholders are the most important part of the corporation's upon whom the main focus lies.

The basic corporate structure in terms of shareholders, managers, and shareholders can be described as.

The board of directors which consist of managers, CEOs, cfos are elected by the shareholders of the corporation. These board of directors mainly focuses on the stakeholders interest. Stakeholders are the person who have any kind of interest associated with the Corporation, this includes shareholders.

Shareholders are the person who hold share of company, even if it is one share. The managers take care of day-to-day transactions of the corporations and the board of directors focuses on increasing shareholders value.

Stakeholders are considered as the sole of the corporation, as stakeholders are not happy the corporation cannot Run smoothly.

We may not give them a separate positions in the Corporation but the hierarchy can be described as above.

Rahul Sunny answered 1 year ago

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