The following elementary rules of business finance apply alike to individuals and to the largest enterprises; the remainder of this work consists practically of the application of these general rules to various business problems.

1. Study and utilize all sources of capital, including earning power and credit.

2. Do not be afraid to borrow for legitimate business development when you can earn profits and repay the loan when due.

3. Do not dissipate capital on side lines and outside investments.

4. Systematically accumulate assets, both tangible and intangible.

5. Always keep available sufficient cash and convertible assets to meet emergencies and to seize special opportunities.

6. Use income sparingly for living expenses and pleasure, but freely for business maintenance and development.

7. Use foresight - which is the cardinal virtue in all financial operations; make budgets to govern all expenditures.

These are the prudent, indisputable rules for sensible financing. They have been preached and proven over and over again for many centuries past. The wisdom which these homely rules embody applies just as truly to the business of the Standard Oil Company and the United States Steel Corporation as to the affairs of John Smith. A man who can grasp these principles, hold them continually before his eyes, and apply them intelligently, is bound to handle his finances wisely both in his business and in his private life.

However, simple as they are, to apply these fundamental principles to all the complex situations which arise in modern business is no easy task. Sound financing calls for clear thinking and a wide range of knowledge.