Further， just as industrial skill and ability are getting every day to depend more and more on the broad faculties of judgment， promptness， resource， carefulness and steadfastness of purpose -- faculties which are not specialized to any one trade， but which are more or less useful in all -- so it is with regard to business ability.In fact business ability consists more of these non-specialized faculties than do industrial skill and ability in the lower grades： and the higher the grade of business ability the more various are its applications.
Since then business ability in command of capital moves with great ease horizontally from a trade which is overcrowded to one which offers good openings for it： and since it moves with great ease vertically， the abler men rising to the higher posts in their own trade， we see， even at this early stage of our inquiry， some good reasons for believing that in modern England the supply of business ability in command of capital accommodates itself， as a general rule， to the demand for it； and thus has a fairly defined supply price.
Finally， we may regard this supply price of business ability in command of capital as composed of three elements.The first is the supply price of capital； the second is the supply price of business ability and energy； and the third is the supply price of that organization by which the appropriate business ability and the requisite capital are brought together.We have called the price of the first of these three elements interest； we may call the price of the second taken by itself net earnings of management， and that of the second and third， taken together， gross earnings of management.
NOTES：
1.Compare Appendix A， section 13.
2.German economists call this "factory like" (fabrikm鋝sig)house industry， as distinguished from the "national" house industry， which uses the intervals of other work (especially the winter interruptions of agriculture) for subsidiary work in making textile and other goods.(See Sch鰊berg on Gewerbe in his Handbuch.) Domestic workers of this last class were common all over Europe in the Middle Ages but are now becoming rare except in the mountains and in eastern Europe.They are not always well advised in their choice of work； and much of what they make could be made better with far less labour in factories， so that it cannot be sold profitably in the open market： but for the most part they make for their own or their neighbours' use， and thus save the profits of a series of middlemen.Compare Survival of Domestic Industries by Gonner in the Economic Journal， Vol.II.
3.We have already noticed how almost the only perfect apprenticeships of modern times are those of the sons of manufacturers， who practise almost every important operation that is carried on in the works sufficiently to be able in after years to enter into the difficulties of all their employees and form a fair judgment on their work.
