Purpose – The purpose of this paper is to attempt a justification as to why a profit-making firm may be viewed as a function of its nucleus expertise and a risky portfolio of deals. Design/methodology/approach – This is a theoretical paper relying on mathematics, graphs and verbal arguments...

Although principles underlying binary economics were first published in Kelso and Adler [Kelso, L.O., Adler, M., 1958. The capitalist manifesto, downloadable at <www.kelsoinstitute.com> Kelso Institute], the many books and papers that discuss the subject generally do not utilize conventional economics language. To...</www.kelsoinstitute.com>