Friday, August 3, 2012


Management who are also employees, are separated from production workers. This class of managers manages the day-to-day operations both in the private and in the public sectors. The ultimate control in the private sector rests with ownership however defined. In the public sector decisive jurisdiction rests with government at whatever level.  Research and development, accounting, investments in expanded operations all this decisions are made by educated and trained professionals. The capitalists, who frequently have little knowledge where there money comes from, often hire out the entrepreneurial function. Ownership is separated from the entrepreneurial function but the capitalist is still in charge of both sectors.

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