Chapter VI: Descriptive Outline of the Course

In looking over the following detailed outline of the Modern Business Course, you will see more clearly how closely every section is related to daily business practice.

The italics after each title give the actual chapter headings; the following matter gives a brief discussion of the purpose and scope of each section of the Course.

BUSINESS AND THE MAN

"_Scientific Training for Business_," _an introduction to the
Modern Business Course and Service_
_Nature and aim of business_
_The profit problem_
_Economics and sociology_
_Psychology_
_Ethics of business_
_Vision, or the idea_
_Personal efficiency_
_Health_
_The efficient business man_
_The executive_
_Subordinate or junior officers_
_The rank-and-file worker_
_Personality_
_Character Analysis_
_Opportunity_

The most important thing in business is the human element--you. Every man must have real ambition, high ideals, and a definite goal in mind before even a correct knowledge of business principles will help him to more than a half-way success.

The purpose of this first section of the Course is to discuss the viewpoint of the successful business man in an inspiring way, so that you may be inspired yourself and so that you may be able to inspire others about you.

"Scientific training for business" is an introduction to the whole Modern Business Course and Service. In it Dean Johnson tells you in what way you should read the Course, how to get the most out of it, and how to use the equipment so as to bring results.

The Course begins with an analysis of business operations. It shows briefly what are the dominant features of business life which no man can afford to neglect. It then takes up the relation of personal qualities to business success; it shows what personal characteristics are helpful and how they may be cultivated; and it also points out the traits of mind, manners and morals which hinder men in their business career. The first point in understanding business problems and business principles is to approach them with the right attitude of mind.

This section of the Course serves to bring the reader into personal touch with the business problems which will engage his attention more in detail in the subsequent sections and thus furnishes a useful introduction to the entire Course.

ECONOMICS--THE SCIENCE OF BUSINESS

_Purpose and scope of economics_
_Fundamental concepts_
_Land and capital_
_Labor and enterprise_
_Three fundamental laws_
_Consumption of wealth_
_Value and the consumer_
_Value and the producer_
_Value and the trader_
_Money_
_Credit_
_Money, credit and prices_
_Foreign trade_
_Rent_
_Interest_
_Wages_
_Profits_

Economics is the foundation stone upon which the science of business is built. It underlies all business just as mathematics underlies all branches of engineering. It is the basic subject of the Course, and its general principles should be thoroughly understood before taking up the subjects treated later.

The book is written for the general reader, who has little or no knowledge of economic theory. It gives a clear idea of the business problems and forces with which business men deal and enables the reader to form intelligent judgments of his own.

This section of the Modern Business Course makes clear the laws governing the prices of goods, the wages of employes, the profits of employers, the processes of exchange, the functions of money and credit, and the rent of buildings and land. It takes up in comprehensive manner the problems raised by trade unions, by trusts, by governmental taxation and by the growing tendency toward governmental regulation of business.

An understanding of all these live, interesting business problems is an essential part of the mental equipment of a broad-gauged business man, working under present-day conditions.

BUSINESS ORGANIZATION

_Purpose and forms of business organizations_
_Sole proprietorship_
_General partnerships_
_Limited partnerships_
_Syndicates_
_Business trusts_
_Corporations as business units_
_General aspects of corporations_
_Incorporation of companies_
_Dissolution of corporations_
_Stock and dividends_
_Stockholders_
_Meetings of stockholders_
_Directors and officers_
_Intercorporate relations_
_Consolidations, sales and leases of assets_
_Holding companies_
_Illegal combinations_

If you are in business for yourself, or in some way become interested in a growing business, there is nothing that is of greater interest than your rights and the rights of other men who are in the concern.

The application of the correct principles of production, marketing, financing and accounting are necessary to insure success, as they determine the profits of the business as a whole. Every man goes into business to secure more income for himself, and the amount of his own income will depend, not only on the amount of the profits of the whole business, but on his own proportionate share of these profits. The division of the profits into shares depend almost entirely on the form of organization.

Moreover, when men enter business they hazard not only their time and a definite amount of wealth in the enterprise, but perhaps other wealth that was intended to be kept separate. Indeed, embarking on a business venture may be but the beginning of the loss of the income of future years when all chance of profits has ceased and the business represents nothing but a lot of debts that remain to be liquidated.

Risk is an important element that is varied by the form of organization selected. This section traces briefly the rise of the corporation through the individual enterprise, the partnership and the joint stock company, and states the advantages and disadvantages of each of these forms of conducting business, as well as those of the corporation. This section of the Course constitutes the first step in the study of corporate finance.

PLANT MANAGEMENT

_The basis of modern industry_
_Fundamental industrial principles_
_Characteristics of modern industry_
_Methods of organization and administration_
_Coordinative influences_
_Purchasing_
_Storing material_
_Planning and production departments_
_Insuring results--securing industrial data_
_Standards_
_The control of quality--inspection_
_Rewarding labor--older methods_
_Rewarding labor--new methods_
_Comparison of wage systems--profit sharing_
_Statistical records and reports_
_Location of industrial plants_
_Arrangement of industrial plants_
_Practical limitations in applying industrial principles_
_Problems of employment_
_Employes' service_
_Science and management_

Modern management of industrial plants is characterized by planning and system. Old processes and old methods no longer command respect because they are old. They have been subjected to searching analysis in the hope of finding better ways of doing things. We look today not for the history, but for the reasons of every phase of plant management.

This is our aspect of the general industrial changes which have transformed modern industry and made it a high-powered productive instrument. It is not an isolated thing, but just as significant a part of modern business methods as are improved transportation, increased credit and present-day banking.

In this part of the Course, the relation of plant management to the characteristic development of modern life is first traced, and then the changes displayed which scientific methods have made in the conduct of manufacturing processes. These affect the structural organization of business, the relations of the directing and managing organs to one another. They also affect the operations of these managing units, the purchase and storage of materials, the routing and sequence of work, the best utilization of machinery and the like.

The keynote of the volume is efficiency in productive effort and the principles which underlie it.

MARKETING AND MERCHANDISING

_Marketing: Modern distribution_
_The field of marketing_
_Study of the product_
_Study of the market_
_Trade channels_
_Selling to the jobber_
_Wholesale middlemen_
_Selling to the retailer_
_Selling through exclusive agencies_
_Influencing retail sales_
_Selling to the consumer_
_Good-will and price maintenance_
_Reaching the market and the complete campaign_
_Merchandising: The jobber_
_Modification of the jobber's service_
_Problems of the jobber_
_Retail competition_
_Retail types_
_Chain stores_
_Mail-order selling_
_Training the sales force_
_Buying_
_Stockkeeping_
_Cooperation for service_

There are three different kinds of things that must be considered by everyone who has anything to sell. One group of considerations has to do only with personal salesmanship and sales management. Another has to do only with advertising. Still a third is concerned solely neither with personal salesmanship nor with advertising, but is common to both. Before an effective force of salesmen can be selected and trained and an advertising campaign mapped out, the plan behind the personal selling and advertising campaign must be devised--the marketing methods must be determined.

The considerations here may be grouped under three heads: the goods to be sold, the market for the goods, and the methods of reaching that market.

A number of questions must be asked and answered about the things to be sold. For example: Is there a ready demand or must one be created? Is the commodity a necessity or a luxury? Is it subject to seasonal variations? Is the trade-mark well known? And so on.

The first part of the Text, Marketing, concerns the problems of the manufacturer; the second part, Merchandising, treats of the problems of the dealer, both wholesaler and retailer. Between them they present a complete picture of the processes by which goods reach the consumer, and reveal the tendencies in modern distribution.

SALESMANSHIP AND SALES MANAGEMENT

_Salesmanship: The power of personal salesmanship_
_Staples, branded staples and specialties_
_Selling process--preliminary to the interview_
_Selling process--the interview_
_Selling process--the agreement_
_Selling process--miscellaneous_
_Human appeals that sell_
_Development of character and caliber_
_The salesman's duties and responsibilities_
_Cooperation, influence and friendship_
_Sales management: The sales manager--his qualifications and duties_
_Building an organization--selecting men_
_Building an organization--training salesmen_
_Selling methods and the selling equipment_
_Compensation and territory_
_Sales records_
_Cooperation with salesmen_
_Sales contests_
_Sales conventions_

There is no subject which is more universally interesting to everyone in business than selling.

Salesmanship in its broadest sense is essentially the selling of one's point of view, the ability to start with the other fellow's point of view and lead his mind to accept yours. When an individual endeavors to influence another, he is practising salesmanship. In this broad sense, everyone will profit by a knowledge of the principles of salesmanship and selling methods.

In this portion of the Modern Business Course, the salesman is shown the necessity of learning something of his prospect previous to the interview. Suggestions are also made for getting to see the buyer. The developments in a sale are discussed in such a way as to enable the salesman to build an effective, man-to-man transaction, and the human appeals that sell are outlined.

After discussing the qualifications and duties of the sales manager, methods to be employed in the selecting, training and handling of men are detailed. The training of retail sales people is discussed. The planning of the salesman's equipment, the building of a sales manual, the apportionment of territory are gone into. Methods of keeping sales records and statistics are outlined; directions given for the handling of sales contests and conventions, the editing of a house organ, and the apportioning of quotas.

ADVERTISING PRINCIPLES

_Advertising--a constructive force in business_
_Fundamentals of advertising_
_Getting the advertisement seen_
_Getting the advertisement read_
_Making the advertisement understood_
_Making the advertisement produce action_
_Human appeals in advertising_
_Word values in advertising_
_"Getting the order" copy_
_"Getting the inquiry" copy_
_"Directing the reader" copy_
_"Molding public opinion" copy_
_Preparing the advertisement_
_Layout of advertisements_
_Booklets, catalogs and folders_
_Drawings and reproductions_
_Printing art in advertising_
_Trade-marks, slogans and catch phrases_
_Legal limits and restrictions on advertising_

Considering the large number of progressive concerns entering the field of advertising each year, and profiting thereby, the average business man's lack of knowledge concerning advertising principles is lamentable.

Few have any ability either to write or to judge copy, and almost all are at a loss to deal intelligently with the printer.

This section of the Course discusses the various classes of copy divided according to the results each is designed to accomplish. The value of word tone in writing and how to secure it are indicated. Instructions for preparing and laying out the advertisement are given.

The technique of the printing art--type faces, paper, printing processes, half-tones and line-cut illustrations--is discussed.

The advertising slogan, the package design and the various considerations in connection with the trade-mark are treated.

The business man is prepared to correlate the principles of advertising with those of marketing methods, and to bring an understanding of both to his study of advertising problems of wholesale and retail merchandising.

OFFICE ADMINISTRATION

_The office in modern business_
_Location, planning and layout of the office_
_Office equipment and supplies_
_Office appliances_
_Selection of employes_
_Employment tests and records_
_Training_
_Stimulation of employes_
_Filing_
_Interdepartmental communications_
_Office manuals_
_The worker's compensation_
_Welfare_
_Office organization_
_Planning_
_Office control_
_Work reports and their use_
_The art of management_

It is only in recent years that individual business enterprises outside of the manufacturing field have grown to such importance as to bring a large number of employes under one management. Today the problems of the office are no less urgent than those of the shop.

Office administration is in some respects like, in other respects unlike, plant management. It is alike in that it pursues the same ideals of efficiency. It is unlike in that machines and equipment fall into the background and the human element looms large in the foreground of office work.

Methods of conducting clerical work have, since the advent of the various office machines, of which the typewriter was the pioneer, undergone rapid transformation. Underlying these changes there have been principles, more or less clearly recognized, which it is the aim of the Text to discover and present in an orderly and systematic fashion.

In few departments of office work have standardized processes based upon scientific principles made such headway as in the employment field. Hiring employes for office work, training them for their duties, stimulating them to their best effort, adjusting wages to work performed, and providing for deserved promotions, are no longer casual occupations of some general offices, but the work and special concern of the trained office manager.

Here, as elsewhere, concentration and specialization are beginning to reveal the principles underlying successful effort. Such principles concern not only the operations, but the organization of the office and its various parts.

ACCOUNTING PRINCIPLES

_Development and scope of accountancy_
_Accounts and their purpose_
_Classification of accounts_
_Double entry bookkeeping_
_Books of account_
_Applying accounting principles--the original entries_
_Applying accounting principles--the ledger records_
_Applying accounting principles--summarizing results_
_Columnar books_
_Opening, operating and closing the books_
_The trial balance_
_Economic summary_
_The balance sheet_
_Single entry bookkeeping_
_Continental system of bookkeeping_
_Depreciation_
_Methods of computing depreciation_
_Labor-saving devices_
_Internal checks_

As business becomes more complex we are more and more dependent upon accounting methods to show us the trend of the individual business in which we are interested.

Hence a knowledge of accounting principles is indispensable. Yet, even among experienced bookkeepers, comparatively few have a clear understanding of the principles which underlie all correct methods of keeping financial records.

This section of the Course, therefore, starts with a clear explanation of the fundamental principles of bookkeeping, and progresses step by step until it reaches the most complicated cases of partnership and corporation accounting.

Within recent years the great importance of proper accounting methods in the conduct of business has come to be fully recognized.

This section of the Course should enable any executive or accountant to determine what accounting methods are best adapted to his own line of business.

CREDIT AND COLLECTIONS

_Mercantile credit_
_Book credit_
_Documentary credit_
_Granting credit--personal considerations_
_Granting credit--business considerations_
_Sources of credit information_
_Cooperative methods in credit investigation_
_Analysis of credit information_
_The credit man_
_Credit management_
_Collecting the money due_
_The collection manager and his work_
_Principles underlying collection effort_
_Collecting on a friendly basis_
_Unfriendly stages of collection_
_Credit protection_
_Bankruptcy_
_The role of the credit department in developing business_

When a bill of goods is sold, the transaction is by no means complete--that is, if the sale is on credit. The purchaser must pay the bill. But some purchasers cannot pay, others will not; therefore caution must be exercised in granting credit, and pressure brought to bear in obtaining payment.

Often seekers after credit are foolishly offended at the questions they must answer. They do not realize how personal is the favor they are asking, nor do they usually understand the combination of factors which the credit man must consider.

These factors range all the way from personal habits of the applicant to a survey of general business conditions.

There is a well-organized machinery for gathering credit information both in this country and abroad. This machinery, however, should be supplemented by the personal observation of the salesmen, many of whom now fail to cooperate in the right spirit with the credit manager.

The credit operation is incomplete till the goods are paid for; collections are the complement of credit granting, and they receive an extended treatment in the Text. As a last resource, the law may be resorted to, as is evident in the treatment of credit protection and bankruptcy.

The possibilities of the credit department as an agency in building up business, which have not always been understood, are set forth in the concluding chapter.

BUSINESS CORRESPONDENCE

_Letters that get action_
_Seeing through the reader's eyes_
_The spirit of the letter_
_The proposition in the letter_
_The proposition analyzed_
_Fundamentals of the presentation_
_The aid of formula in presentation_
_Applying formulas to the presentation_
_Routine and individual letters_
_Adjusting complaints by letter_
_Credit letters_
_Collection letters_
_Working the mailing list_
_Planning the letter_
_Writing the letter_
_Mechanical form_
_Getting the most out of words_

Nearly all of us are constantly receiving and sending letters, and we know in our experience the common types--the nasty letter, the sloppy letter, the cold-as-an-iceberg letter, and, on the other hand, the direct yet cordial letter which makes us feel as if we had gripped a friendly hand.

The profit-making influence of good correspondence can hardly be overestimated.

A good sales letter may be the means of getting thousands of dollars' worth of business; a poor adjustment letter may be the cause of losing a worth-while customer.

To a large extent business must be carried on by means of letters, and there are few subjects of more vital importance to the business man than business correspondence.

Business letters always have a direct purpose in view and there are certain underlying principles which should be observed in all business letters, whatever their particular purpose. But these letters serve many different purposes, and some of the prominent types and their characteristics are treated.

Especial attention is given to sales correspondence, which forms a most important branch of business correspondence.

COST FINDING

_The importance of cost finding_
_Problems of cost finding_
_Identification of costs_
_Issuing and evaluating material_
_Evaluation of labor costs_
_Expense or burden_
_Depreciation_
_Distribution of factory expense_
_Production centers and the supplementary rate_
_Effect of volume of work on expense distribution_
_Other features of expense distribution_
_Distribution of administrative expense--resume_
_Assembling and recording costs_
_Analysis and reduction of costs_
_Predetermination of costs--materials and labor_
_Predetermination of costs--expense_
_Application of cost finding methods_

Of late years, and as a direct result of growing competition in all branches of industrial enterprise, the subject of cost is receiving increased attention.

Every year sees hundreds of progressive concerns adopting methods designed to ascertain the real cost of producing and selling goods and of managing a business enterprise.

Manufacturers are no longer satisfied with merely making a profit. They want to know what lines are paying and what lines are not--not in a general way, but specifically in actual figures. They want to know which departments are producing economically and which are not.

In this part of the Course, the various methods of keeping track of costs are described and illustrated. Particular attention is given to the mixed question of allotting general factory expense or burden.

The possibilities of predicting costs are fully discussed and the significance of this development of cost finding methods is fully impressed upon the reader.

The problem of costs is one of the widest application in business management and its significance in different lines of business is pointed out.

ADVERTISING CAMPAIGNS

_The purpose of the campaign_
_Analysis of demand and competition_
_The advertising appropriation_
_Methods of identification_
_The advertising department_
_The advertising agency_
_Advertising media_
_Weighing circulation_
_Weighing prestige_
_Letters and direct advertising_
_Sampling_
_How periodicals are used_
_The use of signs_
_Campaigns to obtain distribution_
_Campaigns to obtain dealer cooperation_
_Mail-order campaigns_
_Public sentiment campaigns_
_The trader's campaign_
_The campaign as a whole_

In the Modern Business Course and Service the study of advertising is divided into three parts. First, in Marketing Methods there is a complete presentation of the plan behind the campaign--of the things that have to be considered by anyone who has anything to sell, before he sends out salesmen or prepares advertising.

The section of Advertising Principles shows what advertising can do for business, guides one in choosing the right advertising appeal, and treats of the technique of advertising, writing the copy, preparing the illustrations, and getting the advertisement before the public.

There is much more to advertising, however, than the making of a preliminary study of the writing of advertisements.

The advertiser has to consider problems of organization, methods of identifying his goods, his relation with agencies, the selection of media, distribution, dealer cooperation, and a host of other things, all of which have an important part in the complete campaign.

This section deals with the many essential parts of an advertising campaign which have not been considered in preceding sections of the Modern Business Course. It gathers together all the diverse considerations of the advertiser, shows their relation one to another, and binds them into a unified whole.

CORPORATION FINANCE

_The corporation; a preliminary sketch_
_Capital of the corporation_
_Capital stock_
_Stock not paid in cash_
_Trade credit and bank loans_
_Short-term loans_
_Mortgage bonds_
_Collateral trust bonds_
_Bonds secured by leases_
_Miscellaneous bonds and preferred stock_
_Amortization of bonds_
_Capitalization_
_Investment and maintenance of capital_
_Income, dividends and surplus_
_Promoting the new enterprise_
_Promoting consolidations_
_Selling stocks and bonds_
_Financing the small company_
_Financing reorganizations_

The advantages of the corporation have made it the most popular form of financial organization, and nearly all business men are now interested in one way or another in the formation or management of corporations, or in the buying and selling of the stock and securities of corporations.

The stability of practically every business concern depends in a very large measure upon the keenness of judgment used in its financial management.

This section of the Course enables one to think along financial lines with accuracy and decision. The methods by which corporations are promoted and financed are fully described, and the principles that underlie successful corporate management are stated.

The different kinds of bonds, such as mortgage bonds, collateral trust bonds, bonds secured by leases, etc., are explained and the methods of selling them discussed.

There are sections on capital and its maintenance and a full discussion of income, dividends and surplus that will be of value to the executive and to the investor.

In the last three chapters the application of the principles of corporation finance to the small company is fully described.

TRANSPORTATION

_The railroads and the shipping public_
_The Government takes the railroads_
_Government reorganization of railroads_
_Railroad rates_
_Classifications_
_Rates in Official Classification and Southeastern Territory_
_Transcontinental rates and the Panama Canal_
_Export and import rates_
_Special services and charges_
_Terminal services and charges in New York_
_Express and parcel post_
_The Transportation Act_
_Inland water transportation_

Business as it is conducted today would not be possible without the railroad.

The corner grocery store as well as the big manufacturing company is directly affected by traffic, rates and methods. The prosperity of many a business and community is largely dependent upon relations with transportation companies. Yet many business men are unfamiliar with even the elements of rate making and traffic handling.

The war made great changes in railroad organization and when the railroads were returned at the close of the war to their former owners a new set of problems had to be faced. Rail rates had assumed a new importance, labor and other costs had increased and both shipper and carrier were called upon to consider transportation in an entirely different light than before the war. All of these problems receive careful consideration in this Text, and the tendencies of the times, so far as they have been clearly revealed, are pointed out.

Classifications, rates, special services, terminal facilities and charges are some of the specific questions discussed.

FOREIGN TRADE AND SHIPPING

_Foreign trade: Relation of foreign trade to domestic business_
_The national aspect of foreign trade_
_The market_
_Governmental trade promotion_
_Private trade promotion_
_Indirect exporting_
_Direct exporting_
_The conditions of sale_
_The export department_
_Cooperation for foreign trade_
_Making an export shipment_
_Importing_
_Shipping: Principles of ocean transportation_
_The freight service_
_Ports and terminals_
_Ocean freight rates_
_Rate agreements_
_The merchant marine_

The events of recent years have turned the attention of business men of America once more to the problems of foreign trade.

This section of the Course describes the development of our trade with foreign countries. It describes various changes which are at work in this field and the methods by which foreign trade is conducted.

Intimately associated with this subject is that of shipping; the transportation problems involved in foreign trade, questions of routes, rates, registry and the like are given particular attention.

The advantages and disadvantages of American and foreign shipping and the problems involved in the up-building of an American merchant marine receive careful consideration.

BANKING

_Classes of banks_
_Operations of a commercial bank_
_The bank statement_
_Loans and discounts_
_Establishing bank credit_
_Bank notes_
_Deposits and checks_
_The clearing house_
_Bank organization and administration_
_Banks and the government_
_American banking before the Civil War_
_Banking in Europe_
_Canadian banking system_
_The National banking system_
_Banking reform in the United States_
_The Federal Reserve system_
_State banks and trust companies_

Business concerns deal in bank credit every day. They have on deposit large amounts of their capital. They rely upon their banks' stability. And yet how few can read a bank statement with real insight and judgment.

The fundamental principles underlying all banking operations are presented under this heading. The nature of money and its relation to credit and capital are described, and the conditions which lead to a general rise or fall of prices are set forth.

The important banking and monetary experiences of the United States are reviewed and full descriptions of the banking systems of the United States, Canada, England, France and Germany are given.

In connection with banking, the source of the banker's lending power and its relation to cash on hand are indicated, as well as the distinction between the bank note and the bank deposit, and the factors controlling the rate of discount.

Banking practice is in large part a study of the banking laws and customs prevalent in the United States, including those governing Federal Reserve Banks, State banks and trust companies.

The subject is fully discussed in this part of the Course, as are also the technical aspects of banking in all details.

INTERNATIONAL EXCHANGE

_Domestic exchange_
_Federal Reserve Bank clearings_
_General aspects of foreign exchange_
_Basal factors of exchange_
_Restoration prospects for rates of exchange_
_Foreign remittances_
_Bills of exchange_
_A day in an exchange box_
_Finance bills_
_Arbitrage_
_Rates of interest_
_Gold shipments_
_Sterling exchange_
_Gold standard_
_Gold exchange standard_
_Silver and paper exchanges_
_London and New York as financial centers_
_War and the exchanges_
_Tables_

The early part of this section of the Course deals with inland exchange and describes the method by which settlements are made between different parts of the same country. When this is fully understood the problem of foreign exchange becomes very simple. It is the application of the same principles complicated only by the difference in money units between different countries.

The "Foreign Exchange" department of banking is of such great importance and presents so many difficult questions that it deserves and is accorded special treatment. The reader is given a full description of the mechanism of the exchange market and is shown how money is made in foreign exchanges.

He learns how the vast amount of export and import trade is made possible through the interrelations between the foreign exchange markets of New York, London, Paris and other large centers. He also learns concretely how foreign shipments are financed and is given some valuable information concerning the influence of gold and other factors upon foreign exchange rates.

An important feature of this section is a thorough discussion of the best methods of handling export shipments. Many American and Canadian manufacturers are considering the advisability of going after foreign trade with greater vigor. They are usually puzzled when it comes to considering how to finance these shipments, which are often a long time in transit. The growing importance of export trade makes this section of the Course particularly valuable.

INSURANCE

_Risk and insurance_
_The life risks_
_Life insurance protection_
_Life policies and premiums_
_Modification of the ordinary life policy_
_Annuities and pensions_
_Group insurance_
_Functions of insurance carriers--the old line companies_
_Assessment and fraternal insurance_
_Government life insurance_
_Accident and health insurance_
_Liability insurance_
_Workmen's compensation insurance--general features_
_Workmen's compensation insurance--rate making_
_Fire insurance_
_Fire insurance policies_
_Marine insurance_
_Other forms of insurance_

Insurance constitutes a form of investment in which we are all interested, as purchasers of life insurance, fire insurance, casualty insurance, marine insurance, or of any other of the various forms which have come into existence. To buy insurance properly, one should know the principles that underlie rates and insurance operations, and should be able to judge the policy which covers these various essentials. Partnership and business insurance is much more used now than it has been heretofore and it is becoming an important element in adding to the stability of business.

Personal or life insurance occupies a large space in the Text. The nature of the life risk is discussed as well as the means of protection through the straight life policy. The various motives which have prompted these variations and the effect of these modifications upon the premium or the price of insurance are clearly explained. Various types of business organizations with divergent business methods have been devised for the purpose of conducting life insurance. The strength and weakness of the different organization forms are pointed out.

Another aspect of personal insurance is found in accident and health insurance. Obligations toward others generally for personal injuries is the basis of liability and workmen's compensation insurance, of which the latter has had an almost mushroom development of late years.

Property insurance brings up diverse questions in fire insurance and in marine insurance.

THE STOCK AND PRODUCE EXCHANGES

_Functions of stock exchanges_
_Leading stock exchanges_
_The New York Stock Exchange_
_Stock exchange securities_
_Execution of orders, transfers and settlements_
_Methods of trading_
_The speculative transaction_
_Relations of banks to the security market_
_Quotations and news services_
_The curb market_
_Benefits and evils of speculation_
_Influences that affect stock prices_
_Produce exchanges and their functions_
_The future contract_
_Organized spot market_
_The Chicago Board of Trade_

Almost every man in business comes into contact with some one of the exchanges.

Therefore, a detailed description of the organization, operation and management of the principal security and raw material markets of the world is of inestimable value. This is the aim of this section of the Modern Business Course and Service.

Speculation in goods and in stocks exists because it performs an economic service. It saves the manufacturer of cotton goods or flour, for example, from gambling by an operation known as hedging. Business men should understand how speculation performs this service.

The volume closes with a discussion of corners and of the influences governing security and produce prices.

ACCOUNTING PRACTICE AND AUDITING

_Accounting Practice_
_Proprietary accounts_
_Repairs, renewals, depreciation and fluctuation_
_Partnership problems at organization_
_Partnership problems during operation_
_Partnership dissolution_
_Partnership dissolution illustrated_
_Consignments and joint ventures_
_Fiduciary accounting_
_Insolvency accounts_
_Corporations_
_Branch accounts_
_Auditing_
_The auditor and his work_
_Scope of auditor's activity_
_Procedure and methods_
_Classes of audits_
_Verification of the asset side of the balance sheet_
_Verification of liabilities_
_Reports and certificates_

This section deals with the application of the principles of accounting to the complicated problems that arise in practice. The correct method of treating the proprietary accounts under the different legal types of organization are considered. The management of surplus, the treatment of reserves, the relation between funds and reserves and the method of handling sinking funds are discussed at length.

The differentiation between capital and revenue charges is perhaps the most difficult problem which the accountant has to face. The important principles involved in this problem are treated with numerous examples taken from actual cases. The difficult problems which arise in partnership and corporate accounting are fully explained.

Auditing is taken up from the business man's point of view rather than from the point of view of the practitioner. However, many points of interest to the practitioner and student are considered. The nature of the auditor's work is discussed and the different classes of engagements which auditors undertake are explained.

The auditor renders a report on his work at the conclusion of his engagement and the form and contents of his report are treated at length. The subscriber is shown the difference in certificates which auditors attach to balance sheets and the proper method of interpreting them is discussed.

FINANCIAL AND BUSINESS STATEMENTS

_Importance of classified information_
_Statistical and graphical statements_
_Auxiliary statements_
_Analysis and interpretation of income statements_
_Consolidated income statements_
_Valuation and interpretation of fixed assets_
_Valuation and interpretation of intangible assets_
_Valuation and interpretation of current assets_
_Valuation and interpretation of deferred assets_
_Treasury stock and its treatment_
_Interpretation of liabilities_
_Surplus, reserves and dividends_
_Sinking funds and other funds_
_Relation of working capital and income to assets_
_Consolidated balance sheets_
_Private budgets_
_Municipal budgets_
_Interpretation of professional reports_

The business man must understand accounting as far as he uses accounting knowledge in interpreting the progress of his business.

He wants not so much the details of accounting technique as the information necessary to enable him to use his accounting records properly. No one can expect to succeed in a big way without the ability to read financial and business statements--both on the lines and between the lines.

In every business the executive deals with a great variety of reports, statements, statistics and charts. This volume is designed to set forth the principles and to describe the methods by which they should be interpreted.

In the discussion of private and public budgets is included data that will be of the utmost value to every business man. You will find a thorough discussion of budget making and a clear outline of what should and what should not be done.

Instructions for the analysis of the reports and financial statements of industrial organizations and railway companies are set forth.

INVESTMENTS

_Farm mortgages_
_Urban real estate_
_Public bonds of domestic origin_
_Bonds of foreign origin_
_Bonds and stock contrasted_
_Bonds and stock classified_
_Railway securities_
_Analysis of railroad securities_
_Public utility securities_
_Industrial securities_
_Mining securities_
_Oil securities_
_The cycle of trade_
_Investment barometers_
_The dream land of finance_
_General rules_

Every successful business man at some time in his career has occasion to seek gilt-edge investments--either for his own surplus funds or for those of his company.

The daily losses of investors' capital are evidence of the need for a volume which aims to qualify you to make the critical analysis of securities which is necessary to an intelligent estimate of their value.

Such topics as farm mortgages and urban real estate are thoroughly discussed and the opportunities in this new field for the investor are clearly explained. Domestic bonds, foreign bonds, securities of industrials, railways and public utility corporations are analyzed in a way to help you make an intelligent estimate of their value.

In this volume you will find a thorough study of the subjects of security fluctuation and trade cycles, together with information on the general rules and technique of trading.

BUSINESS AND THE GOVERNMENT

_Business and the public in partnership_
_Taxation and business_
_Government, natural resources and the farmer_
_Government encouragement of industries and commerce_
_Public inspection of business_
_Problems of employment_
_Public service corporations_
_Local public utilities_
_Trusts and combinations_
_The postal service_
_Should public management be extended?_
_The great war: its effects, its influence, its lessons_

The Course opens with the personal relations of a man to a business and continues with an analysis of the various activities which constitute modern business. In this section it closes with the manifold relations of business to government.

Business is, as it were, in partnership with the government. In this partnership the government is active, as there are government departments aiming to promote business in manufactures and in trading.

Business, of course, cannot exist without government, and as the war demonstrated, government cannot exist without business. Business is restive, however, under the close supervision wrought of war necessities. How far is such supervision justified in times of peace?

This is a question both of principle and expediency and all its aspects are brought out in the discussion of specific problems, the tariff, trusts and corporations, public utilities, national and local, and the like.