Foundations of Business Thought

FOUNDATIONS OF BUSINESS THOUGHT

CALVIN M. BOARDMAN

ALAN N. SANDOMIR

HARRIS SONDAK

FOUNDATIONS OF BUSINESS THOUGHT, NINTH EDITION

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ISBN: 978-0-9971171-2-7 TABLE OF CONTENTS

PART I – INTRODUCTION

A WRITTEN WORD IS THE CHOICEST OF RELICS 2

OF STUDIES FROM THE ESSAYS 6 Francis Bacon

READING FROM WALDEN 7 Henry David Thoreau

FROM THE SOULS OF BLACK FOLK 12 W. E. B. DuBois

SELECTIONS FROM THE BUSINESS GUIDE 14 J. L. Nichols

PART II - MOTIVATION FOR THE DEVELOPMENT OF COMMERCE

INTRODUCTION: ALL THAT IS SOLID MELTS INTO AIR 18

FROM THE JOURNAL OF CHRISTOPHER COLUMBUS 23 Christopher Columbus, Clements Robert Markham, and Paolo del Pozzo Tonscanelli

A HISTORY OF THE ANCIENT WORLD 31 Fray Bernardino De Sahagun

FROM THE TRUE HISTORY OF THE CONQUEST OF NEW SPAIN 33 Bernal Diaz Del Castillo

OF PROPERTY FROM THE SECOND TREATISE OF CIVIL GOVERNMENT 41 John Locke

1879 SPEECH TO CONGRESS 50 In-mut-too-yah-lat-lat, also known as Chief Joseph

FROM FAUST PART TWO 63 Johann Wolfgang von Goethe

ECONOMY FROM WALDEN 86 Henry David Thoreau

THE WORLD IS TOO MUCH WITH US 101 William Wordsworth

PART III - FOUNDATIONS OF COMMERCIAL SOCIETY

INTRODUCTION: DON’T KNOW MUCH ABOUT HISTORY 104

FROM THE REPUBLIC 114 Plato FROM THE POLITICS 120 Aristotle

LAISSEZ-FAIRE POLICY FROM THE ECONOMIC PRINCIPLES OF CONFUCIUS AND HIS 125 SCHOOL Chen Huan-Chang

FROM AN INQUIRY INTO THE NATURE AND CAUSES OF THE WEALTH OF NATIONS 129 Adam Smith

I, PENCIL 134 Leonard E. Read

FROM THE FABLE OF THE BEES 137 Bernard Mandeville

WEALTH FROM ESSAYS AND JOURNALS 151 Ralph Waldo Emerson

THE VEINS OF WEALTH FROM UNTO THIS LAST AND OTHER ESSAYS ON ART AND 165 POLITICAL ECONOMY John Ruskin

FROM ACRES OF DIAMONDS 172 Russell H. Conwell

FROM ATLAS SHRUGGED 175 Ayn Rand

SELECTION FROM: THE BUSINESS GUIDE - TEACHING BUSINESS TO LADIES 180 J. L. Nichols

CAPITALIST PRODUCTION FROM DAS KAPITAL 182 Karl Marx

THE SOCIAL ORGANISM FROM RELIGION AND THE RISE OF CAPITALISM 186 R. H. Tawney

FROM THE PROTESTANT ETHIC AND THE SPIRIT OF CAPITALISM 197 Max Weber

FROM THE ACQUISITIVE SOCIETY 206 R. H. Tawney

FROM THE GOSPEL OF WEALTH 211 Andrew Carnegie

SELECTION FROM: THE BUSINESS GUIDE 218 J. L. Nichols

FROM THE PERSONAL RELATION IN INDUSTRY COOPERATION IN INDUSTRY 220 John D. Rockefeller, Jr.

THE SOCIAL RESPONSIBILITY OF BUSINESS IS TO INCREASE ITS PROFITS 227 Milton Friedman

THE SHUCHU KIYAKO* Seika Fujiware 233

PART IV – MARKETING

INTRODUCTION: YOU ARE WHO YOU THINK YOU ARE; SO BE CAREFUL ABOUT WHO YOU THINK YOU ARE 236

FROM THE ART OF WAR 242 Sun Tzu

FROM DE OFFICIIS 257 Cicero

OF CHEATING, WHICH IS COMMITTED IN BUYING AND SELLING FROM 263 THE SUMMA THEOLOGICA Thomas Aquinas

SELECTION FROM: THE BUSINESS GUIDE 271 J. L. Nichols

SELECTION FROM: THE BUSINESS GUIDE 273 J. L. Nichols

NATURAL SELECTION FROM THE ORIGIN OF SPECIES 274 Charles Darwin

FROM THE FINANCIER 277 Theodore Dreiser

PECUNIARY EMULATION AND CONSPICUOUS CONSUMPTION FROM 280 THEORY OF THE LEISURE CLASS Thorstein Veblen

FROM THE MIDDLEMAN 293 Albert W. Atwood

THE DEPENDENCE EFFECT FROM THE AFFLUENT SOCIETY 302 John Kenneth Galbraith

PART V – ACCOUNTING

INTRODUCTION: WHEN YOU ADD, YOU SUBTRACT 308

THE ANTECEDENTS OF DOUBLE-ENTRY 311 A. C. Littleton

PARTICULARS OF RECKONINGS AND THEIR RECORDING FROM 318 ANCIENT DOUBLE ENTRY BOOKKEEPING: LUCA PACIOLI’S TREATISE Luca Pacioli

SELECTION FROM: THE BUSINESS GUIDE 332 J. L. Nichols

THE ETERNAL STOREHOUSE OF JAPAN [NIPPON EITAIGORA] 333 Ihara Saikaku

FROM THE COMPLEAT ENGLISH TRADESMAN 337 Daniel Defoe

SELECTION FROM: THE BUSINESS GUIDE 344 J. L. Nichols

PART VI – FINANCE

INTRODUCTION: PUTTING IT ALL TOGETHER, BIT BY BIT 346

A DISCOURSE OF COYNED MONEY 351 Sir Dudley North

FROM THE TRAVELS OF MARCO POLO 360 Marco Polo

LENDER AND BORROWER FROM THE CODE OF MAIMONIDES 362 Moses ben Maimonides

OF THE SIN OF USURY FROM THE SUMMA THEOLOGICA 365 Thomas Aquinas

FROM THE WORKS OF BENJAMIN FRANKLIN 373 Benjamin Franklin

OF RICHES AND OF USURY FROM THE ESSAYS 379 Francis Bacon

OF PROFITS FROM THE PRINCIPLE OF POLITICAL ECONOMY 383 John Stuart Mill

SELECTION FROM: THE BUSINESS GUIDE - HOW MONEY GROWS 393 J. L. Nichols

SELECTION FROM: THE BUSINESS GUIDE - THE CREDIT SYSTEM 394 J. L. Nichols

SELECTION FROM: THE BUSINESS GUIDE - HOW TO DO BUSINESS WITH A BANK 395 J. L. Nichols

THE TULIPOMANIA FROM EXTRAORDINARY POPULAR DELUSIONS 396 AND THE MADNESS OF CROWDS Charles Mackay

CONFUSION DE CONFUSIONES 402 Joseph De La Vega

FROM THE GENERAL THEORY OF EMPLOYMENT, INTEREST, AND MONEY 404 John Maynard Keynes

SELECTION FROM: THE BUSINESS GUIDE - BOARDS OF TRADE AND STOCK EXCHANGES 406

PART VII – MANAGEMENT

INTRODUCTION: THE ART OF GETTING THINGS DONE THROUGH PEOPLE 410

LETTER TO HORACE GREELEY 415 Abraham Lincoln

FROM THE PRINCE 417 Nicolo Machiavelli

FROM THE REPUBLIC 419 Plato

FROM THE ANALECTS 422 K’ung Fu-tzu, also known as Confucius

AN EMPLOYER’S VIEW OF THE LABOR QUESTION FROM THE GOSPEL OF WEALTH 427 Andrew Carnegie

FROM LETTERS FROM A SELF-MADE MERCHANT TO HIS SON 434 George Lorimer

SELECTION FROM: THE BUSINESS GUIDE - BUSINESS ENERGY 438 J. L. Nichols

THE CONDITION OF EFFICIENCY FROM THE ACQUISITIVE SOCIETY 439 R. H. Tawney

FROM LADY CHATTERLEY’S LOVER 448 D. H. Lawrence

THE HUMAN SIDE OF ENTERPRISE 453 Douglas M. McGregor

SELECTION FROM: THE BUSINESS GUIDE - HOW TO DO BUSINESS 460 J. L. Nichols

THE NATURE OF EXECUTIVE RESPONSIBILITY FROM 461 THE FUNCTIONS OF THE EXECUTIVE Chester I. Barnard

SELECTION FROM: THE BUSINESS GUIDE - HOW TO APPLY FOR A SITUATION 464 J. L. Nichols

PART VIII – PRODUCTION

INTRODUCTION: TAKE THIS JOB AND LOVE IT 466

FROM THE TRAVELS OF MARCO POLO 471 Marco Polo

MANUFACTURERS FROM THE WORKS OF ALEXANDER HAMILTON 480 Alexander Hamilton

“MANUFACTURES” THE PRESENT STATE OF MANUFACTURES, COMMERCE, 487 INTERIOR AND EXTERIOR TRADE? Thomas Jefferson

THAT ARISTOCRACY MAY BE ENGENDERED BY MANUFACTURES FROM 489 DEMOCRACY IN AMERICA Alexis de Tocqueville

ALIENATED LABOR 492 Karl Marx

FROM THE PRINCIPLES OF SCIENTIFIC MANAGEMENT 500 Frederick Taylor

FROM MY LIFE AND WORK 507 Henry Ford

SELECTION FROM: THE BUSINESS GUIDE - HOW TO ESTIMATE THE 514 CONTENTS OF A PILE OF GRAIN J. L. Nichols

FROM THE HOUSE OF MIRTH 515 Edith Wharton

ECONOMIC FOOTHOLD FROM WOMEN AND THE TRADES 520 Elizabeth Beardsley Butler

MAN AND MACHINE FROM ALL MEN ARE BROTHERS 526 Mohandas Gandhi

SELECTION FROM: THE BUSINESS GUIDE - MAXIMS 529

INDEX 531

MATERIAL USED WITH PERMISSION 534