The sun., 1916-09-16


tonal wealth. and an intelligent pur-
suit Of this object calls for a knowl-
edge Of the law Of supply and demand
and a knowledge Of the effect Of the
investment and the use of the capital
which is 10 essential a part Of the
business organization. The student Of
business. therefore. logically begins his
studies with a consideration OF the
basic requirement of capital and the
use OF that capital In the production Of
the additional wealth that We term In
business a net profit.
The other element Of the business
organization. aside from capital. is the
human factor. In a scientific study of
organization we find this human Effort
or factor in the smallest form Of or
ganization in h proprietorship--that
is. in the persons of those who con-
tribUte the capital. A. the organiza-
ton grows. workers are secured who
are given a definite wage OF salary In
return for their services. The wage or
salary is a prior claim upon the re-
turns OF the organization and all of the
speculative interest remains In the
proprietorship. We thus find the work.
ing organizations growing from the
proprietorship u to boards Of direct
ors. officers OF corporations. superin-
tendents, foremen and so on down to
the minor employees.
Here again we must conclude that
one who is to know business must
know the origin and development OF
the business organization on its
human or effort side. From a study
Of this part Of the organization We de-
velop all the laws and principles OF
management which are so vitality nee
essar in making the capital of the
business organization fully productive.
A man may by long years OF expert
ence acquire a great deal Of informa-
ion about the managerial side Of
business, but the most important OF
these principles are now taught surely
and effectively in n comparatively
short space OF time in the schools Of
| commerce.
Aside from the economic and psy-
Geological laws and principles that are
operative in the modern business or
ganization. We have the rules and reg
ulations OF society. which We term
law. The c%ontractual relation exists
in almost every phase Of organization
work. Values are advanced n re-
ceived under contract, partnerships are
established by contract. the services Of
employees are enlisted by contract,
and so on throughout the entire held
OF business. We rave the negotiable
instrument law. defining and stating
the rights Of the parties to commercial
paper. We have the bankrupt law,
specifically providing for insolvency
adjudicating the rights OF the parties
In interest. We have the corporation
law. providing "A legal entity relieved
from many OF the obligations OF part
nership. In fine. business Is subject
in things small and great to those
rules which have been found to be
equitable and beneficial in the conduct
Of business, and which have finally be
come imperative By reason of specific
statutory enactments and judicial de-
cisions.
The conduct of business. therefore,
In largely a matter OF conformity TO
legal rules and regulations. Many OF
these rules are learned as n matter OF
experience. but here. as elsewhere. we
find the school of experience a costly
one. The young man who IL prepar-
ing to-day to steer his course through
business seas is learning TO avail him.
self of the training that the profess
sional schools OF business make avail
able in their courses OF study. by
these means he Is often better trained
In law at the time OF his entry upon a
business career han is the business
man with practical experience Of fifty
years. A study OF law therefore be-
comes an essential part OF a course "a
prepare one to function successfully in
business.
Business has a language in which il
records its transactions. II you desire
credit from a banker ne will ask you
to submit a balance sheet and posi-
bly, a profit and loss account. He will
wish to secure an understanding oil
what your business is and of VIVA,
your business has done. In short. hi
will ask for information to be submit.
ted in the working language Of bust.
ness.
II a business manager desires to Sc.
cure a control OF an operation or OF q
department he calls upon his account
ing department for the information
II he wishes to compare me year will
another. 1t IL again a matter OF &C
counting. Turn where you will
throughout all business. o will finC
that business Is directed by reason o,
facts submitted in the form Of state
ments and reports. n in nearly al
cases you will find a definite account
Ing procedure In operation as a meant
toward gathering n making avail,
able the needed information.
. We mus conclude. therefore. tina
: enc who Is to understand the proc
: esses OF business NJ to give direc
tions TO others In the handling OF bust
ness transactions Is needlessly handi
. capped IL he pursues his way withou
! an understanding of the workin
language Of commerce. He may &c
Z along after a fashion. Just az "A ma,
u In a foreign country nay indicate hi
wishes by signs instead Of by using tn
accredited language OF the country |
which he was s%ojourning, The youn
r mar who Is thus devoid OF the ac
8 copied business language cannot sc
cure his results as quickly or as surcl
as the young man who has mad
proper preparation for understandin
the conditions with which he will h
q surrounded.
Accounting. therefore, preferabl
8 secured by the scientific and SUI
processes of professional education.
an essential part of the equipmcr
which IL being secured by the thou
= sands of young men who in New Yor