The purpose of K-Business companies, like any business firm, is to make money for the stockholders. Ultimately, this is the reason why stockholders invest and the reason for the business starting in the first place. This is the same in K-Business. The company, ultimately, exists to make money. Of course, the company will have to pay its employees. In K-Business, all employees will actually also own stock, so there is some correspondence between the two. However, al votes will be by proxy with the original salesperson of the stock selling the check.

As a second purpose, K-Business companies will also teach students how a business operates in all aspects, manufacturing, selling, opening, and closing.

a. The Stockholders

The stockholders officially "own" the K-Business company. They own it, of course, according to the shares that they own. On a de facto basis, like any other company, the shareholders cannot constantly meet to discuss the daily business of a company.

As of 2005-2006, however, two exceptions exist to this rule. Company sponsors and the program director can always vote their shares. In addition, stockholders attending the two mandatory open board meetings can vote their stock if they attend.

b. The Board of Directors

The Board of Directors, then, makes all important decisions for the company. They will meet on a about a monthly basis. In K-Business, the Board of Directors will consist of all students, which is why all students must retain at least one share of stock. At that meeting, they will vote on major issues concerning the company. These range from selecting a president, approving a product, deciding on a bonus, or removing an officer.

Like a real company, the day-to-day running of the company depends on the president. He executes the decision of the board and makes minor decisions in the time between Board meetings. At meetings, also, all vice-presidents and, indeed, all the sales force reports to the president.

A good president, of course, will do more than this. He will provide leadership to the company and inspire the best of his workers.

A company president holds the responsibility for running the monthly board meetings. That means writing up an agenda that covers all essential topics, including reports from all his fellow officers, consideration of new and old business, and completion of all factors.

A company president has relatively little written work to complete. A wise president will come up with an agenda for the weekly meetings. He'll also oversee the writing of all other company documents. Along with the corporate secretary, he will write up the midyear and final reports to the company stockholders.

In the absence of a Corporate Secretary, the President performs his functions

b. The CFO (or Treasurer)

The financial heart of the company is the treasure. Like a heart, all money flows to, through, and from him. While the president makes all financial decisions, the CFO retains a very real veto if, in fact, the company lacks the funds to support a decision by the Board. While not typically called a "vice-president," the Treasure is of equal if not greater rank. In the event of an emergency, a company can function without one of the other vice-presidents, but not without a CFO.

The CFOs reports very much take the form of numbers and figures. He can gauge the strength of the company's funding, how many units it needs to sell to break even, even the book value of the company stock.

The other vice-presidents must all work with and through the treasure. The Treasure will issue the company stock. The Vice-President of manufacturing must request the funds necessary to buy the raw materials, the vice-president of sales must report on sales, write-offs, and commissions, to the CFO, and the Vice-President of Personnel must report on the number of hours worked and distribute workers' checks. In all of these transactions, while the president must remain consciously aware, the CFO needs to keep strong and accurate records. Particularly, the CFO must master his company's checkbook and its account statements. These records will become the basis for the monthly company board meetings.

c. The Vice-President of Manufacturing

Without a Vice-President of Manufacturing, a company would not make any products. That would, obviously, prevent the company from selling anything. The VPoM, along with the CFO, will set the necessary manufacturing targets and goals. After this, the VPoM either personally or through a purchasing manager, will secure the necessary materials.

Except for the week of monthly board meetings, the Vice-President of Manufacturing will have de facto charge of most meetings. This is because most of each meeting will be dedicated to producing the product, and the VPoM will run the production of process. Except for the CFO and other officers briefly performing those duties, all other workers will take his orders.

The VP of Manufacturing will keep records of the units produced. Production figures, naturally, will form the basis of his reports to the Board.

If the company does not have a Safety Director and Purchasing Manager, the VP of Manufacturing will also perform their functions.

While the Vice-President of Manufacturing deals with the inhuman factors of production, i.e., land and entreprenuership, the Vice-President of Human Resources deals with Labor. The VPoHR needs to make sure that the company contains a sufficient work force and that this work force shows up for work and receive fair compensation. The VPoHR, along with the President, typically come up with a wages and salary scheme which the board approves. The VPoHR typically takes attendance immediately at the start of each meeting and contacts the home of any member not present.

The VPoHR needs to keep accurate records. Generally, a company personnel officer keeps a spreadsheet that details the number of hours worked. This task can become quite simple or complex depending on whether the company relies on salaries exclusively, hourly wages, some combination of the two, pays overtime, or provides attendance bonuses. All this information will ultimately form the basis of information given to the CFO who will, in turn, write checks, which the VPoHR will issue. Attendance and labor needs, obviously, will form the basis of the VP's presentations to the Board.

e. The Vice-President of Sales

No matter how units a company produces, the company will not make a profit unless they sell those units. Finished units become the property and responsibility of the Vice-President of Sales. More than other officers, his duties will generally extend to periods outside the regular meeting, in which, other than updating his records, he will function as just another worker.

The major recording part of the VpoS's work will consist in tracking units as either (a) in the hands of the salespersons (b) sold or (c) destroyed. This will mean the regular collection of money which, in turn, goes to the CFO. This could also entail tracking commissions.

The VP of Sales, however, as a greater responsibility in simply making sure the company moves units. This might require inspiring the sales forces, coming up with new ideas to sell units, or even cutting prices. In the absence of a Marketing Manager, the VP of Sales serves as Marketing Manager.

a. Corporate Secretary

The Corporate Secretary operates directly under the President. He assists the President in preparing his monthly agenda and reports to give to his stockholders. He also assists in the gathering information and writing of all company reports.

b. Purchasing Manager

The purchasing manager operates directly under the VP of Manufacturing. He works with the VPoM to determine the purchasing needs for continued production, including capital and land. He shops for the best prices for materials and then, after purchasing materials, reports on the costs to the VP of Manufacturing.

c. Safety Director

The safety director trains all personnel in the proper operation of dangerous machinery or substances. In the case of an emergency, the safety director fills out a report.

The CIO takes charge of technical aspects of the company. In a K-Business company, the CIO will act as "company nerd." He'll assist all officers in the completion of their computer-related tasks, especially assisting the officers in complete of their records. In additional, he'll maintain the company website (if applicable).

Company members not in an officer's position serve in three different capacities. First, since they own one share of stock, they serve as members of the board. Second, they help to manufacture the product, serving as part of the labor force. They also sell the product, acting as sales personnel.

The company advisor's primary tasks lie in providing adult supervision and in offering business advice to the company. They will also accept receipt of documents detailed in the new company governing code. In the event of companies not meeting these guidelines, they will act as liquidators as the company goes to receivership.