The Economics of Corporate Enterprise

The Economics of Corporate Enterprise

The Economics of Corporate Enterprise

The Economics of Corporate Enterprise

Excerpt

Some explanation is perhaps necessary for offering yet another volume to the already long list of books dealing with the corporation. Whatever justification there is for the present effort lies in its somewhat different treatment of familiar problems; with respect to the chosen title, The Econmnics of Corporate Enterprise, the emphasis falls upon the word economics.

One of the virtues of modern economic analysis is that the consequences of any change in the economic data can be traced through to show their impact upon the output, prices, profits, and general behavior of the individual firms that compose the economic system. And an important group of writers has developed the economic theory of the single enterprise to an incisiveness not known a few years ago. Presumably these latter-day achievements in the economic theory of the enterprise and in economic theory in general have some relevance to business enterprises in the real world; if not, they are no more useful than other harmless forms of mental gymnastics. So far as I am aware, however, there has been no thorough-going attempt to apply them to the corporation as the characteristic form of business enterprise in the real world. This seems unfortunate insofar as it is true. Descriptive material on how corporations are organized, how they raise funds by the sale of security contracts, the provisions of such contracts, corporate expansion, reorganization, etc., are all very well. But unless such descriptions are draped over a firm theoretical skeleton so that they form a recognizable and logical body of thought they are likely to remain unassorted and unrelated piles of gaudy and drab materials. Moreover, there is the ever-present risk that the materials will be rendered styleless and obsolete by a new act of Congress, the establishment of a new regulatory commission, or a judicial decision in an important case. In other words, there is the very real danger of a person having his useful knowledge decreed away or suddenly relegated to the attic. As a consequence it is . . .

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.