ABSTRACT
The modern corporation is directed toward the goals of growth and profitability; it has a complex hierarchical structure; and management rather than stockholders plays a key role in its operations. Large corporations are markedly enlarging their share of the economy: whereas the 200 largest corporations controlled half of all manufacturing assets in 1950. Corporations use public relations experts to contend with rumors that may endanger the corporate image and consequently harm sales, employee morale, and relations with stockholders. Market concentration has a significant influence on competitive performance: "High concentration is almost universally accompanied by high entry barriers" to new corporations. The increase in the size of the conglomerate industrial corporations can be seen in the fact that in 1929 only three had assets of over $1 billion while in 1973 there were 136 of the wealth. Transnational corporations are subject to national laws and regulations and their operations can therefore be closed down in a given country.
