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The CEO sets the corporate culture. Working with the founder, they determine the companies' overall mission and core values. They make sure all business is done in conjunction to that mission and according to their core values.
Yes, it's a cliche. But at the end of the day it really is true: A partnership is a lot like a marriage. At the beginning, everyone is on the same page and decisions are easy. But don't kid yourself -- disagreements will happen.