The Company Sector

Abstract

Chapter 4 continues our grass-roots scrutiny of the economy, looking at the sector of industrial and commercial companies, which are important because they produce nearly half of the United Kingdom’s value added and undertake nearly four-tenths of the United Kingdom’s gross fixed capital formation. We consider some economic-legal features of companies (which economists should know about) and, following the exposition of types of accounts in Chapter 2, we examine the workings of industrial and commercial companies (taken as a sector) through the appropriation account, the capital account, and the financial account.