Entrepreneurship 1 - 4.02 Vocabulary

What is the competitive bidding process?

• A series of sequential steps taken by purchasing specialists

• A method of collecting price quotes from suppliers vying for an order or job

• The buying of goods and services for a business

• A change in the shape or appearance of an object

What does 'credentials' refer to?

• A promise made to the consumer about product satisfaction

• Information about a person’s or business’s skills, abilities, and qualifications

• A formal, printed record of a sale

• Intangible activities that are performed by other people for money

What is a guarantee in the context of consumer products?

• A type of product that changes the shapes or forms of materials

• A ratio of net profit after taxes divided by net sales

• A business that buys consumer goods or services and sells them to the ultimate consumer

• A promise made to the consumer that a product’s purchase price will be refunded if the product is not satisfactory

What is the purpose of an invoice?

• To provide a detailed description of standards and requirements

• To record the sale including all necessary information such as the buyer, seller, items purchased, amounts, prices, delivery date, credit or discount terms, etc.

• To outline the terms of delivery, payment information, warranty and guarantee information, and other details as needed for a service

• To form a business agreement to order goods

What is a 'make-or-buy decision'?

• The act of determining whether to produce a needed part or purchase it from a supplier

• A method of collecting price quotes from suppliers

• A printed record of a sale

• A change in the shape or appearance of an object

What is the main goal of negotiation in business?

• To ensure that products are manufactured in various shapes or forms

• To meet specific needs or wants through an agreement with another party

• To buy goods and services for a business

• To establish and describe detailed requirements

What does 'profit margin' represent?

• The process of buying goods and services for a business

• The ratio of net profit after taxes divided by net sales

• A promise made to the consumer about product satisfaction

• A change in the shape or appearance of an object

What is a purchase agreement?

• A business that buys consumer goods or services and sells them to the ultimate consumer

• A purchase contract that lists the good(s) or service(s) to be bought, the quantity to be purchased, the price, terms of delivery, payment information, warranty and guarantee information, and other details as needed

• A form that a business fills out to order goods

• Intangible activities that are performed by other people for money

What is the difference between a purchase agreement and a purchase order?

• A purchase agreement is a detailed description of standards and requirements, while a purchase order is a form to order goods

• A purchase agreement lists the good(s) or service(s) to be bought and other details, while a purchase order is the form a business fills out to order goods and may be the same as a purchase agreement or contract

• A purchase agreement is a promise made to the consumer about product satisfaction, while a purchase order is a printed record of a sale

• A purchase agreement is a ratio of net profit after taxes divided by net sales, while a purchase order is a method of collecting price quotes

What is strategic planning?

• buying goods for the company

• Three to five years of long range planning for the company

• sequential steps taken by the purchasing agent

• the process a company takes to sell their products