hese if he is to acquire a valid title to the product and have a
right to sell it. These costs are therefore "purchase money" paid for
undivided shares of goods.

_Labor of Management._--It usually happens that an _entrepreneur_, or
employer of labor and capital, performs some labor himself; and we
have already noted the reason for this in the fact that the kind of
labor that he performs is so important that the fate of the business
often depends on it. He may manage the business so well as to make it
succeed or so ill as to make it fail. He pays himself for this labor
when he draws a salary for his services. As an _entrepreneur_ he
treats his own labor as he does that of any one else and buys the
fraction of the product of his business that his own labor of
management has created. In this he illustrates the general law that
all payments of wages are payments of the purchase of a certain
quantity of product. Though the owner's own contribution to the
product is not always mentioned in terms in the accounting, that is
what his salary is paid for, though it is spoken of as a payment for
his "time," or his labor.

_The Capitalist as the Vender of a Share in a Product._--Capital, as
we have seen, also contributes a definite share toward the total
amount of every product in the making of which it cooeperates. Labor
does not do all the transforming of leather into shoes which is done
in the factory, since machines, fuel, etc., help; and we shall later
find that there is a way of determining how much of the product the
help so given creates. It adds a certain amount to what labor can
claim as its own special product, and the man who owns the capital
becomes the lawful claimant for this additional share. When he agrees
to let his capital work for an employer, he virtually sells to the
employer the undivided share of the product--shoes or what not--that
the capital really creates. The furnisher of productive instruments,
like the furnisher of labor, is a vender, and the _entrepreneur_ is a
buyer.

_Entrepreneur and Capitalist._--As was stated in an earlier chapter,
an actual employer nearly always furnishes some of the capital that he
uses. If he did not do so, he would have difficulty in borrowing more,
since banks or other lenders do not loan to empty-handed men. It is
clear that what the employer gets in return for such capital as he may
put into the business is in reality a payment for a contribution which
that particula