Corporate structure refers to the arrangement of different part of a business and therefore does not consider the physical arrangement of buildings in an organization. The structure will show the way work and responsibilities are carried out in an organization or company.It shows the way the different parts of the organization are functioning together as a whole(Hyle, 2009). This enables it to achieve it is goal as acts as a guideline for the organization.
In choosing a given corporate structure, the business should first know its needs so that it can then choose a structure that meets them. The structure of the business depends on the vision, mission and the goals of the business.
For example, in a sole proprietorship, the owner of the business suffers all the losses as well as enjoying all the profits of the business. Investors prefer corporations becausein a limited liability company, the debts or obligations of the company do not extend to the shareholders (Iviria, 2008). It is a separate legal entity in which the shareholders enjoy share the profits in form of dividends.
In case of any losses, the shareholders are not paid anything. Unlike the ordinary shareholders, preference shareholders are entitled to a fixed dividend irrespective of whether the business makes a profit or loss.
A stock is a share that one holds in a given company or corporation. The stocks can be traded in the stock exchange if it is a public company. In case of a private company, which is owned by 2 people to a maximum of 50, the stock is not traded in the public. Most investors prefer investing in the public companies than private companies since they are controlled by the government and one can sell or buy shares as they are freely transferable (Rufina, 2011). A person who has invested in the corporation becomes a shareholder which means that he or she has a right to share in the profits of the corporation.
JPMorgan&Chase Co. is listed in the New York stock exchange and the current share price is about $40. The income statement of the last two years reported $15,764 million in 2010 and $17,568 million in 2011. Over the last one year, its stock price transactions indicate a high of $ 10 and a low of $ 4.9 per share. Currently the share price is at $9 per share (Peterson, 2010).
Bank of America had reported a net income of $1,446 million in 2011, while in 2010 it had reported a loss of $2238 million. The shareholders received a dividend of $0.01 per share in the year 2011 but received nothing for the year ended 2010. The current share price is $40 per share(Stitt, 2012).
Both of these companies have been listed in the NYSE for many years and therefore well governed to ensure safety of the shareholders’ funds.
Hyle, D. (2009). Corporate Structure and Culture. Retrieved from
Iviria, B. (2008). Forms of Business Organizations. New York, NY: McGraw/Hill.
Peterson, G. (2010). Stock Information. Retrieved from
Rufina, T. (2011).Owning Shares in a Company. London, UK: Pitman.
Stitt, K. (2012). Bank of America Reports. Retrieved from