"The finance conception of the modern corporation, which currently dominates, emphasizes control through the use of financial tools which measure performance according to profit rates. Product lines are evaluated on their short-run profitability and important management decisions are based on the potential profitability of each line. Firms are viewed as collections of assets earning differing rates of return, not as producers of given goods. The firm is not seen as being a member of only one industry. Consequently if the prospect of an industry in which it participates declines, the firm disinvests. The problem for management from this perspective is to maximize short-run rates of return by altering product mix, thereby increasing shareholder equity and keeping the stock price high"
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People from SeattleBusiness theorists from the United StatesSociologists from the United StatesPeople from Washington (state)University of California, Berkeley faculty
Original Language: English
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https://en.wikiquote.org/wiki/Neil_Fligstein
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Neil Fligstein
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