of preferred stock usually have no

of preferred stock usually have no voting rights, but
their claims on dividends are paid before those of common-
stock owners. Although large corporations may
issue both common and preferred stock, generally small
corporations issue only common stock.
Perhaps the most important right of owners of both
common and preferred stock is to share in the profit
earned by the corporation through the payment of dividends.
A dividend is a distribution of earnings to the
stockholders of a corporation. Other rights include receiving
information about the corporation, voting on changes to the
corporate charter, and attending the corporation’s annual stockholders’
meeting, where they may exercise their right to vote.
Because common stockholders usually live all over the
nation, very few actually may attend a corporation’s annual
meeting. Instead, they vote by proxy. A proxy is a legal form
listing issues to be decided at a stockholders’ meeting and
enabling stockholders to transfer their voting rights to some
other individual or individuals. The stockholder can register a
vote and transfer voting rights simply by signing and returning
the form. Today, most corporations also allow stockholders to
exercise their right to vote by proxy by accessing the Internet
or using a toll-free phone number.
Organizational Meeting As the last step in forming a corporation,
the incorporators and original stockholders meet to
adopt corporate by-laws and elect their first board of directors.
(Later, directors will be elected or reelected at the corporation’s
annual meetings by the firm’s stockholders.) The board members are directly responsible
to the stockholders for the way they operate the firm.
Corporate Structure
The organizational structure of most corporations is more complicated than that of a
sole proprietorship or partnership. In a corporation, both the board of directors and
the corporate officers are involved in management.
Board of Directors As an artificial person, a corporation can act only through
its directors, who represent the corporation’s stockholders. The board of directors
is the top governing body of a corporation and is elected by the stockholders. In
theory, then, the stockholders are able to control the activities of the entire corporation
through its directors because they are the group that elects the board of directors
(see Figure 4.4)
Board members can be chosen from within the corporation or from outside it.
Note: For a small corporation, only one director is required in many states although
you can choose to have more. Directors who are elected from within the corporation
are usually its top managers—the president and executive vice presidents, for

Hierarchy of Corporate Structure
Stockholders
(owners)
Elect
Board of
directors
Appoints Officers Hire Employees
117

Even if you own a single share of common stock, you’re
legally a part-owner of the corporation. You’re entitled to
receive any dividends paid to shareholders and you can
vote on important matters such as electing the board of
directors. Your vote is counted—and it counts.

Do We Need More Women in the Board Room?
Half of the world is female, yet only
16 percent of the directors on the boards of
Fortune 500 U.S. corporations are women—
and more than 20 percent of those corporations
have no women directors. By comparison, Norway has the
world’s highest percentage of women directors (more than
30 percent), followed by Sweden (more than 25 percent).
Then again, Norway’s laws require that 40 percent of director’s
seats on corporate boards be reserved for women.
Spain and France have also set quotas for women directors
on corporate boards.
Should more women be serving on U.S. corporate boards?
From a business perspective, women directors tend to be
in tune with the views of female customers, employees, and
managers. In many cases, women handle negotiations differently
than men do, their careers follow slightly different paths, and
their leadership styles may differ, as well. All these differences can
be strengths as boards grapple with internal and external issues.
On the other hand, few women have risen to the top
management ranks of U.S. corporations, which means that
boards must widen their search to find women directors.
Also, boards scouting for directors generally look for the best
candidates with top-notch skills, education, and achievements,
putting much less weight on gender. Should U.S. corporations
take deliberate steps to bring more women into the board room?

example. Those elected from outside the corporation generally are
experienced managers or entrepreneurs with proven leadership
ability and/or specific talents the organization seems to need. In
smaller corporations, majority stockholders usually serve as board
members.
The major responsibilities of the board of directors are to set
company goals and develop general plans (or strategies) for meeting
those goals. The board also is responsible for the firm’s overall
operation and appointing corporate officers.
Corporate Officers Corporate officers are appointed by the
board of directors. Although a small corporation may not have
all of the following officers, the chairman of the board, president,
executive vice presidents, corporate secretary, and treasurer are all
corporate officers. They help the board to make plans, carry out
strategies established by the board, hire employees, and manage
day-to-day business activities. Periodically (usually each month),
they report to the board of directors. And at the annual meeting,
the directors report to the stockholders.
Advantages and Disad vantages
of Corporations
Back in October 2000, Manny Ruiz decided that it was time to start his own company.
With the help of a team of media specialists, he founded Hispanic PR Wire. In a
business where hype is the name of the game, Hispanic PR Wire is the real thing and
has established itself as the nation’s premier news distribution service reaching U.S.
Hispanic media and opinion leaders. Today, the business continues to build on its early
success.8 Mr. Ruiz chose to incorporate this business because it provided a number of
advantages that other forms of business ownership did not offer. Typical advantages
include limited liability, ease of raising capital, ease of transfer of ownership, perpetual
life, and specialized management.
118

Hasil (Bahasa Indonesia) 1:

of preferred stock usually have no voting rights, buttheir claims on dividends are paid before those of common-stock owners. Although large corporations mayissue both common and preferred stock, generally smallcorporations issue only common stock.Perhaps the most important right of owners of bothcommon and preferred stock is to share in the profitearned by the corporation through the payment of dividends.A dividend is a distribution of earnings to thestockholders of a corporation. Other rights include receivinginformation about the corporation, voting on changes to thecorporate charter, and attending the corporation’s annual stockholders’meeting, where they may exercise their right to vote.Because common stockholders usually live all over thenation, very few actually may attend a corporation’s annualmeeting. Instead, they vote by proxy. A proxy is a legal formlisting issues to be decided at a stockholders’ meeting andenabling stockholders to transfer their voting rights to someother individual or individuals. The stockholder can register avote and transfer voting rights simply by signing and returningthe form. Today, most corporations also allow stockholders toexercise their right to vote by proxy by accessing the Internetor using a toll-free phone number.Organizational Meeting As the last step in forming a corporation,the incorporators and original stockholders meet tomengadopsi oleh-hukum perusahaan dan memilih mereka pertama Dewan Direksi.(Kemudian, Direktur akan dipilih atau dipilih kembali korporasipertemuan tahunan oleh pemegang saham perusahaan.) Para anggota Dewan bertanggung jawab secara langsungkepada para pemegang saham untuk cara mereka beroperasi perusahaan.Struktur perusahaanStruktur organisasi kebanyakan perusahaan lebih rumit daripadakepemilikan tunggal atau kemitraan. Dalam sebuah perusahaan, baik Dewan Direksi danpejabat perusahaan terlibat dalam manajemen.Dewan Direksi sebagai orang buatan, perusahaan dapat bertindak hanya melaluiPara Direktur, yang mewakili pemegang saham perusahaan. Dewan Direksiatas badan Corporation dan dipilih oleh para pemegang saham. Dalamteori, kemudian, para pemegang saham mampu mengendalikan kegiatan korporasi seluruhmelalui direkturnya karena mereka adalah kelompok yang memilih Dewan Direksi(Lihat gambar 4.4)Anggota Dewan dapat dipilih dari dalam perusahaan atau dari luar itu.Catatan: Untuk sebuah perusahaan kecil, hanya satu Direktur diperlukan di banyak negara meskipunAnda dapat memilih untuk memiliki lebih. Direksi yang dipilih dari dalam perusahaanyang biasanya manajer top-Presiden dan eksekutif Wakil Presiden, untukHirarki struktur perusahaanPemegang saham(pemilik)Umat pilihanDewanDireksiMenunjuk petugas mempekerjakan karyawan117Bahkan jika Anda memiliki satu bagian dari saham biasa, Andalegally a part-owner of the corporation. You’re entitled toreceive any dividends paid to shareholders and you canvote on important matters such as electing the board ofdirectors. Your vote is counted—and it counts.Do We Need More Women in the Board Room?Half of the world is female, yet only16 percent of the directors on the boards ofFortune 500 U.S. corporations are women—and more than 20 percent of those corporationshave no women directors. By comparison, Norway has theworld’s highest percentage of women directors (more than30 percent), followed by Sweden (more than 25 percent).Then again, Norway’s laws require that 40 percent of director’sseats on corporate boards be reserved for women.Spain and France have also set quotas for women directorson corporate boards.Should more women be serving on U.S. corporate boards?From a business perspective, women directors tend to bein tune with the views of female customers, employees, andmanagers. In many cases, women handle negotiations differentlythan men do, their careers follow slightly different paths, andtheir leadership styles may differ, as well. All these differences canbe strengths as boards grapple with internal and external issues.On the other hand, few women have risen to the topmanagement ranks of U.S. corporations, which means thatboards must widen their search to find women directors.Also, boards scouting for directors generally look for the bestcandidates with top-notch skills, education, and achievements,putting much less weight on gender. Should U.S. corporationstake deliberate steps to bring more women into the board room?example. Those elected from outside the corporation generally areexperienced managers or entrepreneurs with proven leadershipability and/or specific talents the organization seems to need. Insmaller corporations, majority stockholders usually serve as boardmembers.The major responsibilities of the board of directors are to setcompany goals and develop general plans (or strategies) for meetingthose goals. The board also is responsible for the firm’s overalloperation and appointing corporate officers.Corporate Officers Corporate officers are appointed by theboard of directors. Although a small corporation may not haveall of the following officers, the chairman of the board, president,executive vice presidents, corporate secretary, and treasurer are allcorporate officers. They help the board to make plans, carry outstrategies established by the board, hire employees, and manageday-to-day business activities. Periodically (usually each month),they report to the board of directors. And at the annual meeting,the directors report to the stockholders.Advantages and Disad vantagesof CorporationsBack in October 2000, Manny Ruiz decided that it was time to start his own company.With the help of a team of media specialists, he founded Hispanic PR Wire. In abusiness where hype is the name of the game, Hispanic PR Wire is the real thing andhas established itself as the nation’s premier news distribution service reaching U.S.Hispanic media and opinion leaders. Today, the business continues to build on its earlysuccess.8 Mr. Ruiz chose to incorporate this business because it provided a number ofadvantages that other forms of business ownership did not offer. Typical advantagesinclude limited liability, ease of raising capital, ease of transfer of ownership, perpetuallife, and specialized management.118