What characterizes companies in relation to their structure?

Companies are characterized by being managed by a board of directors, which is a fundamental aspect of their structure. This governance model allows for professional management and strategic decision-making, as the board is responsible for overseeing the company's operations and ensuring that it operates in the best interests of its shareholders. The board typically consists of individuals with diverse expertise and experience, contributing to better management of the company's affairs compared to entities with simpler structures, such as sole traders or partnerships.

In contrast, the other options describe ownership or organizational frameworks that do not apply to companies as a whole. For example, a sole trader format involves single ownership without the need for a board, partnerships consist of multiple individuals but lack the formal board structure, and companies are not restricted to one owner but can have multiple shareholders. Thus, the presence of a board of directors is a defining characteristic that distinguishes companies from other business structures.