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Record companies play a significant role in the music industry by signing, developing, recording, promoting, publicizing, and selling music. These companies are often large corporations that own multiple record labels, with each label operating as a mini-company under the larger umbrella corporation. The hierarchy of a record company typically includes a CEO overseeing the entire business, with each label having its own president. The Legal Department handles contracts between the company and artists, as well as any legal issues that may arise.
