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March and Herbert A. Simon, Organizations (New York: John Wiley AND Sons, 1958),
chap. 4, pp. 84 - 111. The section "Incorporation see also above in chapter 6
Co-operative societies and the non-profitable enterprises ".] the Relation it at the heart of the
Expect for benefit from cooperation with other participants.
These benefits represent a product of joint activity of all groups
Participants, and as in all cases of joint activity, here is absent
Undoubtedly fair method to allocate a share of each participant. It introduces in
Relations a conflict element. In theory the market system allows the conflict,
Granting each participant that part to which can involve it in business, and
The size of this part depends on alternatives available for other participants.
Management function includes negotiations on conditions of a concern in the business with
The investors serving, suppliers and consumers.
For the organisation of the enterprise a determinative is that a stream of money
Almost never supplies exact equality between receipts from
Consumers and payments to other participants. The universal decision became
Compulsory equilibration, that is the agreement that one group
Participants will be received in compensation of the sharing by the residual income,
Arising after all other participants have received put by it on
To the contract. This residual income can represent or all income of this
Groups, as in a case with holders of usual shares, or an income part, as in
Co-operative societies. According to usual definition only group of holders
Has the right to reception of the residual income.
It is a conclusion of the huge practical importance as it defines selection
Managers at the enterprise. For the obvious practical reasons, the right on
The residual income includes the right to choose managers. Administrative decisions
In the decisive image determine the size the residual income, and extremely
It is improbable that the contract on which one group is included into business in exchange for
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