Business enterprise

“ While industry and business stand in a relation of mutual cause and effect, in this as in other cases, the initiative in such a movement belongs with the business traffic rather than with the industrial processes. ”

“ The first step in the organization or systematizing of a business is to determine its natural divisions. What is the nature of the business, and what are its distinguishing characteristics? Be it a manufacturing, jobbing, wholesale, retail, or professional concern, there is some one head on whom rests the final responsibility for the success or failure of the business. He must be surrounded with subordinates, each having certain duties to perform, who will be responsible for the performance of those duties, thereby coöperating to carry out the purposes of the enterprise. ”

“ This higher reach of corporation financiering has little if any more of a speculative character than what belongs to the commonplace business management of any industrial enterprise. In all business enterprise that stands in relations with the market and depends on vendibility of its output there is more or less uncertainty as to the outcome. ”

“ There are many items of great volume and consequence that do not fall within the immediate score of these business principles. The housewife's work, e.g., as well as some appreciable portion of the work on farms and in some handicrafts, can scarcely be classed as business enterprise. ”

“ The physical basis of modern business traffic is the machine process, as described in Chapter II. It is essentially a modern fact, - late and yet in its early stages of growth, especially as regards its wider sweep in the organization of the industrial system. The spiritual ground of business enterprise, on the other hand, is given by the institution of ownership. ”

“ In competitive business it is of the gravest importance to keep up the concern's prestige, or "good will." A business concern so placed must be possessed of such prestige as will draw and hold a profitable traffic; otherwise the enterprise is in a precarious case. For the objective end and aim of business enterprise is profitable sales, or the equivalent of such sales if the concern is not occupied with what would strictly be called sales. ”

“ Now, the means by which this balance is kept is business transactions, and the men in whose keeping it lies are the business men. The channel by which disturbances are transmitted from member to member of the comprehensive industrial system is the business relations between the several members of the system; and, under the modern conditions of ownership, disturbances, favorable or unfavorable, in the field of industry are transmitted by nothing but these business relations. ”

“ It is in the industrial corporations that this capitalization of good-will is seen to the best advantage - including, under the term "industrial corporations," railway companies, iron and steel concerns, mines, etc., as well as what are known in the stock market specifically as "industrials." The corporation is, of course, not the only form of business concern in the industrial field, but it is the typical, characteristic form of business organization for the management of industry in modern times, and the peculiarities of modern capital are therefore best seen in these modern corporations. ”

“ As one of many illustrative cases, the Rubber Goods Manufacturing Company may be taken as a typical instance of a corporation organized in a conservative but up-to-date manner for permanent success and stable value. ”

“ The better way for the farmer, the merchant, or the manufacturer, when he feels the years pressing heavily and that he can no longer attend properly to the old demands on him, is to shift by a properly drawn contract the business management of the enterprise to his children, or to those whom he wishes to place in charge. ”

“ The common run of business concerns are occupied with industrial enterprise of some kind, and with transactions in credit, -- with a running sequence of bargains from which the gains of the concern are to accrue, -- and it is upon these gains that attention and effort centers, and to which the management of the concern constantly looks. ”

“ With a fuller development of the modern closeknit and comprehensive industrIal system, the point of chief attention for the business man has shifted from the old-fashioned surveillance and regulation of a given industrial process, with which his livelihood was once bound up, to an alert redistribution of investments from less to more gainful ventures, (5*) and to a strategic control of the conjunctures of business through shrewd investments and coalitions with other business men. ”

“ The material framework of modern civilization is the industrial system, and the directing force which animates this framework is business enterprise. To a greater extent than any other known phase of culture, modern Christendom takes its complexion from its economic organization. ”

“ This unreasoning faith in large and difficult combinations has been induced in the modern community by its experience with the large-scale organization of the mechanical industries, and still more particularly by the convincing pecuniary efficiency of large capital, authoritative control, and devious methods, in modern business enterprise ”

“ It is, e.g., well known that whenever circumstances arise which immediately affect the value of the good-will of a corporation, it is the quotations of the common stock that first and most decidedly are affected. ”

“ The business man aims to gain control of a given block of industrial equipment - as, e.g., given railway lines or iron mills that are strategically important - as a basis for further transactions out of which gain is expected. ”

“ The employer and the employe are mutually interested in the successful conduct of industry; the profits of the one and the wages of the other obviously are contingent upon it, as both profits and wages must be paid from the earnings of the enterprise in which the capital of the one and the labor of the other are jointly invested. This being true, the workman and the employer are equally concerned in the character of the product which is manufactured and sold by them, just as they are interested equally in good markets and regularity of employment. ”

“ But those elements in the industrial world that take the initiative and exert a far-reaching coercive guidance in matters of industry go to their work with a view to profits on investment, and are guided by the principles and exigencies of business. The business man, especially the business man of wide and authoritative discretion, has become a controlling force in industry, because, through the mechanism of investments and markets, he controls the plants and processes, and these set the pace and determine the direction of movement for the rest. ”

“ The ability and integrity of the men who control the policy of the company and the efficiency of the operating officials are the principal factors [71] in the success of an industrial undertaking. Vacillating policies, weakly executed, will ruin the most promising enterprise. This is particularly true in the case of small companies. Every man of business experience will understand the importance of this factor and be guided by it in the selection of industrial securities. ”

“ At the same time the progressively wider and more close-knit articulation of the several industries in a comprehensive process is also going forward, and this also affects all branches of industrial business in some degree and in the same direction, as will appear presently. ”

“ The management, for instance, of a bank, a wholesale export business, a large retail establishment, or of a large putting-out enterprise dealing with goods produced in homes, is certainly only possible in the form of a capitalistic enterprise. ”

“ But instead of investing in the goods as they pass between producer and consumer, as the merchant does, the business man now invests in the processes of industry; and instead of staking his values on the dimly foreseen conjunctures of the seasons and the act of God, he turns to the conjunctures arising from the interplay of the industrial processes, which are in great measure under the control of business men. ”

“ To the community at large the work of pecuniary management, it appears, is less serviceable the more there is of it. The heroic role of the captain of industry is that of a deliverer from an excess of business management. It is a casting out of business men by the chief of business men. ”

“ The "productive-goods industries" show the modern industrial and business traits in an accentuated form and force, and they are, by consequence, in a strategically primary position in the business situation. ”

“ In industrial enterprise as it was then carried on the prevailing unit of organisation was the private firm, with partnership concerns making up a secondary and less commonplace element in the business community. Ordinarily and typically205 these private firms and partnerships owned a certain material equipment employed in industry, and they took the initiative in industrial enterprise on the ground of this ownership; hiring the workmen, buying materials and supplies, and selling the products of the establishment. ”

“ Looking at the process of economic life as a whole and taking it in its rationalized bearing as a collective endeavor to purvey goods and services for the needs of collective humanity, the office of the money unit - money transactions, exchange, credit, and all the rest that make up the phenomena of business - is perhaps justly rated as something subsidiary, serving to facilitate the distribution of consumable goods to the consumers, the Consumption of goods being the objective point of all this traffic. ”

“ In current economic theory the business man is spoken of under the name of "entrepreneur" or "undertaker," and his function is held to be the coordinating of industrial processes with a view to economics of production and heightened serviceability. ”

“ In current discussion of business, indeed ever since the relation of business men to the industrial system has seriously engaged the attention of economists, the point to which attention has chiefly been directed is the business man's work as an organizer of comprehensive industrial processes. ”

“ And in this is illustrated the importance of creating any business organization without regard to individuals.
9. Organization of Mercantile Business. Leaving for a time the organization of a manufacturing enterprise, we will consider the application of the principles of organization to a trading business. In such a business, the administrative section remains the same: stockholders, directors, officers, executive committee, general manager. At this point the business naturally divides into the departments of buying and selling.
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Fig. ”

“ The earnings of the business community, taken as a whole, are derived from the marketable output of goods and services turned out by the industrial process - disregarding such earnings as accrue to one concern merely at the cost of another. ”

“ When the modern captain of industry reorganizes and consolidates a given range of industrial business concerns, therefore, and gives them a collective form and name as an up-to-date corporation, the completed operation presents, in syncopated form and within a negligible lapse of time, all that intricate process of cumulative augmentation of business capital through the use of credit which otherwise may come gradually in the course of business competition. ”

“ On the one hand, the approved methods of corporation finance may in some measure be resorted to by a private firm, Without formal conversion of the concern into the corporate form; and on the other hand, an incorporated company may continue to carry on its business after the manner usual with privately owned concerns. ”

“ Conversely, when a flourishing partnership or similar private firm has gained an assured footing of good-will, in the way of any or all of the items enumerated under that term above, its lot, as prescribed by modern business exigencies, is to go up into a corporation, either by simple conversion into the corporate form or through coalition with other firms into a larger corporate whole. ”

“ The men in industry must first create the mechanical possibility of such new and more efficient methods and correlations, before the business man sees the chance, makes the necessary business arrangements, and gives general directions that the contemplated industrial advance shall go into effect. The period between the time of earliest practicability and the effectual completion of a given consolidation in industry marks the interval by which the business man retards the advance of industry. ”

“ Hard times or prosperity spread through the system by means of business relations, and are in their primary expression phenomena of the business situation simply. It is only secondarily that the disturbances in question show themselves as alterations in the character or magnitude of the mechanical processes involved. Industry is carried on for the sake of business, and not conversely; and the progress and activity of industry are conditioned by the outlook of the market, which means the presumptive chance of business profits. ”

“ It holds, in a measure, of all modern industry that produces for the market, but it holds true, in an eminent degree, of those lines of industry that are more fully under the guidance of modern business methods. These are most closely in touch with the market and are most consistently guided by considerations of vendibility. ”

“ The interest of the community at large demands industrial efficiency and serviceability of the product; while the business interest of the concern as such demands vendibility of the product; and the interest of those men who have the final discretion in the management of these corporate enterprises demands vendibility of the corporate capital. The community's interest demands that there should be a favorable difference between the material cost and the material serviceability of the output ”