where T = the planning horizon, s = the dimension of the firm’s environment,
Ct = disposable revenue of the members of the firm in year t, Xt = a vector of variables describing the economic and social environment of the enterprise in year t. A change in the employment level of the firm produces effects on (a) production, (b) the firm’s environment, and (c) power relationships within the firm.
Since the objective function (3) leads to virtually the same result as objective function (1), and since the functions (4) to (6) are proposed for specific purposes, the following sections will be concerned principally with objective function (2) .