chapter  4
Business Performance
Pages 30

In the previous chapter we have examined various aspects of the process of firm growth. We now turn to examine some of the results of this process. In section 4.2 we look at the empirical results of studies that have examined the inter-relationship between profitability, size and growth. Section 4.3 focuses attention on one aspect of growth, namely, growth by merger, to see if there is any evidence to suggest that growth by merger is less beneficial to society than internal growth. Section 4.4 examines trends in aggregate concentration, i.e. the extent to which a relatively small number of large firms dominate the manufacturing sector. Lastly, in section 4.5 we look at some of the consequences of the growth in importance of the large diversified firm for the efficient allocation of resources.