The general manager of a business encounter many types of business transaction provide an example of a transaction?
A common example of a business transaction is the purchase of goods or services. Let's break down the steps of this transaction:
1. Identify the need: The general manager realizes that the company needs a new software solution to improve efficiency.
2. Research suppliers: The manager looks for potential software providers by searching online, attending industry events, or getting recommendations from colleagues.
3. Select a supplier: After evaluating different options, the manager decides to go with a specific software company based on factors like price, features, and reputation.
4. Negotiate terms: The manager reaches out to the chosen software company to discuss terms such as price, payment schedule, and any customization or support options.
5. Make a purchase order: Once both parties agree on the terms, the manager creates and submits a purchase order document that outlines the details of the purchase, including quantity, price, and delivery date.
6. Payment: The manager initiates a payment to the software company either by issuing a check, making an electronic funds transfer, or using a credit card.
7. Delivery and acceptance: The software company delivers the software to the company, and the manager confirms that it meets the agreed-upon specifications.
8. Record the transaction: The business updates its financial records, including the purchase price, payment made, and any applicable taxes or fees.
9. Follow-up and support: The manager contacts the software company if there are any issues or requests for technical support during a specified warranty or support period.
This example illustrates the lifecycle of a business transaction, showing how the manager identifies a need, researches suppliers, negotiates terms, makes a purchase, records the transaction, and ensures satisfaction with the purchased product or service.