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Named "the owner and the servant" or "the employer and the hired worker". [Legal
The concept "the employer both the hired worker" and the economic concept of firm not
Are identical, as the firm can comprise the control over the property
Other people, as well as over their work. But coincidence of both concepts
It is great enough, that the analysis of the legal concept was useful at an estimation
The economic concept.] intrinsic lines of this relation were described
1. The servant is obliged to render personal services to the owner or another from a name
The owner, differently this contract will appear the contract on sale of the goods or
2. The owner should have the right to supervise job of the servant personally or through
Other servant or the representative. This right of the control or intervention
-- The right to specify to the servant when to work (in working hours), and when not
To work, what to do and as it to do (within the limits of service), - is the major
The characteristic in these relations also separates the servant from the independent contractor
Or from the one who was simply obliged to pass the employer fruits of the work. In
Last case the contractor or the executor is not under the control
The employer at execution of the job or service rendering; it should
To consult with the job, to receive results, which it it
To provide [Batt, Master and Servant, p. 6].
We see that a being of legal relations "the owner and the servant" is the right
Managements, just as in developed above the economic concept. Interestingly
To notice that Batt speaks further:
"The representative is distinguished from the servant not by absence or presence of the fixed
Wages, and it is equal not payment of commission fee for the made job, but
More likely freedom which the authorised representative in the activity "uses
[Ibid., p. 7].
From here we can conclude that the definition of firm made by us close
Corresponds to how it understand in the real world.
Thus, our definition is realistic. Whether it is efficient? It should
To be clear. When we estimate, the firm, principles will be how much great
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