Types of purchases in businesses which entrepreneurs do
Purchasing is the process of getting or buying goods and services from the seller of goods and services.In business,purchasing is simply trade which involves in the exchange of goods and services for for cash or barter trade.So the seller's sells their goods and services either for cash or through barter trade.
Entrepreneurs can either purchase goods and services from suppliers either through cash,through barter trade,through credit or either through hire purchase.
Cash exchange
Cash exchange is whereby the seller gives their goods and services to the buyer and after receiving the goods and services,the buyers gives cash or money to the seller.
Credit exchange
Credit exchange is whereby the seller gives the goods and services to the buyer and they agree with the buyer on when the buyer should pay for the goods and services.The seller can agree with the buyer to pay at the end of the month or depending on the number of days agreed between the seller and the buyer.
Barter exchange
Barter exchange is whereby the seller gives the goods and services to the buyer and the buyer at the same time gives another goods and services to the seller,their is no exchange of goods and services for cash in barter trade.
Hire purchase
Hire purchase is whereby the seller gives the goods and services to the buyer after the buyer had paid small amount of cash known as initial deposits,the buyer will then pay the remaining amount of cash in installments.Installment means paying the seller every month a fixed amount of money until the buyer completes paying the total amount of the goods and services which had been purchased.So hire purchase simply means purchasing goods and services from the seller by paying the initial deposit to the supplier of goods and services before the buyer can pay the remaining amount in monthly installments. Suppose the cost of equipment is $5600 when bought through cash.So when seller decides to sell the equipment the seller can set the initial deposit to be paid by the buyer to be $200 while the remaining $360 is to be paid in monthly installments.So when the monthly installment's is to be completed in one year by the buyer,then the buyer after paying the initial deposits of $200,he/she will be paying $(360/12) every month.That is $30 every month.
Advantages of hire purchase to the seller in business
Disadvantages of hire purchase to the seller in business
Advantages of hire purchase buying to the customers or buyers
Disadvantages of hire purchase to the customers or buyer
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How to finance business's
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Expenses which entrepreneurs encounters during their business operation
How to invest effectively in business
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Entrepreneurs can either purchase goods and services from suppliers either through cash,through barter trade,through credit or either through hire purchase.
Cash exchange
Cash exchange is whereby the seller gives their goods and services to the buyer and after receiving the goods and services,the buyers gives cash or money to the seller.
Credit exchange
Credit exchange is whereby the seller gives the goods and services to the buyer and they agree with the buyer on when the buyer should pay for the goods and services.The seller can agree with the buyer to pay at the end of the month or depending on the number of days agreed between the seller and the buyer.
Barter exchange
Barter exchange is whereby the seller gives the goods and services to the buyer and the buyer at the same time gives another goods and services to the seller,their is no exchange of goods and services for cash in barter trade.
Hire purchase
Hire purchase is whereby the seller gives the goods and services to the buyer after the buyer had paid small amount of cash known as initial deposits,the buyer will then pay the remaining amount of cash in installments.Installment means paying the seller every month a fixed amount of money until the buyer completes paying the total amount of the goods and services which had been purchased.So hire purchase simply means purchasing goods and services from the seller by paying the initial deposit to the supplier of goods and services before the buyer can pay the remaining amount in monthly installments. Suppose the cost of equipment is $5600 when bought through cash.So when seller decides to sell the equipment the seller can set the initial deposit to be paid by the buyer to be $200 while the remaining $360 is to be paid in monthly installments.So when the monthly installment's is to be completed in one year by the buyer,then the buyer after paying the initial deposits of $200,he/she will be paying $(360/12) every month.That is $30 every month.
Advantages of hire purchase to the seller in business
Disadvantages of hire purchase to the seller in business
Advantages of hire purchase buying to the customers or buyers
Disadvantages of hire purchase to the customers or buyer
Related links
Discounts
What is trade discount in business
What is quantity discount in business
What is cash discount in business
What is seasonal discount in business
What is promotional discounts
What is geographical discount
What is accumulative quantity discount in business
What is non-accumulative quantity discount in business
Type of discounts in business
Why business's gives discounts to customers
Entrepreneurship
How to be successful in entrepreneurship
How you can sell goods and services cheaply within your business
Expenses which entrepreneurs encounters during their business operation
Factors to consider before starting the business
How to get business ideas
How to display goods/services in the business
How to display goods/services in the business
How to know that your business is performing well
How businesses can receive feedback from customers
Types of business records
How to classify business files
How to partition offices within the business
Advertisements
How to effectively advertise goods and services
The correct time when business have to advertise their goods and services
What to consider before advertising your business goods and services
What details should be included when advertising products and services
The correct time when business have to advertise their goods and services
Human resource
How to hire best employees in business organization's
How to motivate employees within business organization's
How to study behaviour of employees within the business
What you should know about your employees
Benefits of having intern workers within your business
What is performance contract in business
What is employee's records and details to be included in employee's records
How employees can be active within the business organization's
How to supervise your employees.
What is performance contract
Importance of delegation within the business organization's
What is chain of command in business
How office messengers will deliver information's quickly within the business
Finance
How to finance business's
How to manage finance within the business
Factors to consider before taking business loans
Types of loans
How business's can get loans from the bank easily
How to prevent the business from being bankruptcy
How to make money from all wastes in the business
How to make money in your business
Services which the business can get from bank's
Expenses which entrepreneurs encounters during their business operation
How to invest effectively in business
Types of bank accounts which business's can open from the bank
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