canvas key terms

Term Definition
Competitive bidding process A method of collecting price quotes from suppliers vying for an order or job
Credentials Information about a person’s or business’s skills, abilities, and qualifications
Goods Tangible objects and materials
Guarantee A promise made to the consumer that a product’s purchase price will be refunded if that product is not satisfactory; often called a money-back guarantee
Invoice The formal, printed record of a sale that includes all necessary information as to the buyer, the seller, items purchased, amounts, prices, delivery date, credit or discount terms, etc.
Make-or-buy decision The act of determining whether to produce a needed part or purchase it from a supplier
Manufacturer A type of producer that changes the shapes or forms of materials so that they will be useful to consumers
Negotiation The process of one party reaching an agreement with another party to meet specific needs and wants
Productivity The amount and the value of goods and services produced (outputs) from set amounts of resources (inputs)
Profit margin A ratio of net profit (after taxes) divided by net sales that reflects the profit per dollar of sales
Purchase agreement A purchase contract that lists the good or service to be purchased, the quantity to be purchased, the price, terms of delivery, payment information, warranty and guarantee information, and other details as needed
Purchase order The form that a business fills out to order goods; may be the same as a purchase agreement or purchase contract
Purchasing The buying of goods and services for a business
Purchasing process A series of sequential steps taken by purchasing specialists to buy goods and services for a business
Retailer A business that buys consumer goods or services and sells them to the ultimate consumer
Services Intangible activities that are performed by other people for money
Specifications Standards that are established and described in detail; requirements
Strategic planning Long-range planning (three to five years) for the company as a whole
Suppliers Businesses from which other businesses buy goods or services; vendors
Transformation A change in the shape or appearance of an object
Warranty A promise made by the seller to the consumer that the seller will repair or replace a product that does not perform as expected
Wholesalers Intermediaries who help to move goods between producers and retailers by buying goods from producers and selling them to retailers

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