ABSTRACT
The purpose of business corporations is to make profits by productively employing resources over a long period of time. The purpose of big business corporations is to do this on a very large scale. Corporations become big by (1) investing internal savings supplemented by bank credit, (2)mergers, (3) using new technologies, and (4) using old technologies in a more efficient way. Big business requires a radical separation between owners and managers; therefore, corporate governance must be done by paid professionals. This is managerial capitalism.
