CEO, CFO and COO are acronyms of the corporate world that designate top management positions in a company. The CEO (in English, Chief Executive Officer) is the CEO of a company. THE COO (Chief Operation Officer) is the operations director. The CFO (Chief Financial Officer) is the chief financial officer.
What is a CEO
The CEO is the CEO of a company. He occupies the most important position within the corporate hierarchy. The CEO is primarily responsible for the success of a company, being the ultimate authority in the decision-making process.
The roles of a CEO vary from company to company, depending on their culture, size and structure. However, in general, it can be said that the CEO is the most responsible for defining and executing a company's strategic plan.
There are well-known CEOs. Jeff Bezos, one of the richest men in the world, is the founder and CEO of the Amazon company. In other words, in addition to creating the company, he also runs it. Microsoft, founded by Bill Gates and Paul Allen, has been run since 2014 by Satya Nadella.
Read more about the meaning of CEO.
What is a COO
the COO, the Director of Operations, comes just below the CEO in a company's hierarchy. It is often said that the COO is the CEO's right-hand man. He is responsible for overseeing the day-to-day operational and administrative functions of an organization.
In small companies, this role may be unnecessary, with the CEO being responsible for all executive functions. However, as the company grows, there may be a need to hire a COO, ideally someone who has management experience and who is in tune with the CEO.
In general terms, the CEO is responsible for defining the business plan, containing the goals and the means by which to achieve them. The COO is the one who executes the business plan. It is up to him to supervise the progress of the projects, with the objective of achieving the previously established objectives.
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What is a CFO
The CFO is the financial director of a company. Unlike the CEO, who is in charge of managing general operations, the CFO is limited to managing the finances of a company, overseeing financial activities and dealing with issues such as strategic planning and cash flow (the inflows and outflows of cash).
Within the overall picture of a company, who is at the top is the CEO, but the CFO is the highest authority in the sector financial, playing an important role in decision-making and in the way the company manages its revenues and expenses.
An important assignment of the CFO is the production of financial reports, based on which decisions are made. Its main objective is to ensure the company's financial health, increasing its revenue and reducing expenses.
See the meanings of cash flow and DCF.
See too:
- Definition of Startup
- Definition of Administration
- Definition of Management