ECON 2200 Lecture Notes - Lecture 3: Investment Banking
14 May 2018
School
Department
Course
Professor
ECON 2200
Lecture 3
• Management
o RRs are first US businesses to use professional managers and
adopt management strategies to deal with complex operations.
1. McCallum Management Principles
Management decision making authority equals with
level of responsibility
Use of internal auditing to identify problems
Routine performance evaluations for all employees
2. Scientific Management (Frederick Taylor)
Would go into business and analyze how workers
performed their jobs (streamlined companies)
Critics claimed this “scientific” approach
dehumanized the workers
Workers were paid based on their productivity
IV. Growth of Corporations
• East India Tea Company, one of the first corporations (in 1800s?)
• Benefits of the corporate form of business organization:
o Easy to transfer ownership
o Access to financial capital through sale of stock
o Limited liability
o Unlimited life
A. Number of corps
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