Reviewed by Tom Mclnish University of Texas at Arlington

What is “big business”? The author of this short but informative book spends 27 pages explaining why big business is not simply a large version of small business. Not only does big business have more capital than small business; but there are many other more fundamental differences: higher fixed costs, greater separation of ownership and control, and more diverse economic functions.

The importance of each of these is explained in detail in this first chapter, devoted to the meaning of the phrase “big business.” Another difference is the way the control of distant operations is handled. Small firms such as merchant bankers had traditionally solved the problem of insuring accountability and honesty by staffing distant branches with relatives, but large firms must rely on organizational controls. The most important consequence of the unique characteristics of big business for accountants is that they give rise to the need for complex managerial structures. This complexity leads directly to an increased reliance on the accounting profession.

Altogether very enjoyable reading, the book is enhanced by its numerous references to other works and to specific industries and companies. There is also an excellent annotated bibliography. The book would be useful to accounting students in that it clearly explains the origins of the increased role and status of the accounting profession in modern society. The first chapter on the meaning of “big business” is followed by one which describes the rise and spread of big business. The third and last chapter explores the im-pact of big business on society.