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... account the following alternative theories: the revenue maximisation model put forward by Baumol, the growth maximisation model created by Morris, and, finally, Williamson's managerial utility model. Again, I will define each of these theories by outlining their history and demonstrating how they work, before drawing comparisons between these new suggestions and Smith's neo-classical theory. Finally, I plan to explore the disadvantages of these alternative hypotheses before concluding with some suggestions as to why, despite so many alternatives, the neo-classical theory is still today, after hundreds of years, at the forefront of managerial theories of the firm. Adam Smith, one of the most famous economist of all time,1 first put forward the idea that firms aim primarily for profit maximisation in 1776. This neo-classical theory of the firm assumes that: ...the firm is an abstraction, an idealized form of business, whose existence is solely explained by the purely economic motive of generating ...