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Business Valuation
A process to determine the
current worth of a business or a unit within
that business.
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Buy American
1. A policy or philosophy usually expressed in law
or by executive order that mandates the
purchase, at a certain dollar threshold, of
products with a substantial percentage of
American-made components.
2. A preference policy generally adopted by a
governmental body that requires the purchase
of American-made products or products with a
defined percentage of American-made
components.
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Buy American Act
Law, originally enacted in
1933, that requires the United States
government to prefer U.S.-made products in
its purchases.
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Buy Local
A bid preference which may be given
to suppliers doing business in the purchasing
jurisdiction. See also: Local Preference,
Preference, Bid Preference.
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Buyer
Position title for a procurement
professional or other staff who purchases or
procures goods and services. See also: Law of
Agency, Principal, Agent.
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Buyer-Seller Relationships
There are three
principal relationships between buyers and
suppliers:
1. Transactional: An arm’s-length relationship,
wherein neither party is concerned with the
well-being of the other. Price is the focus of
the relationship.
2. Collaborative: A strategic relationship that
results in the reduction of risk and
uncertainty. This type of relationship creates
interdependency and cooperation.
3. Alliance: A relationship that is based on
institutional trust. Alliance partners share a
vision of the future in which ethics take
precedence over expediency.
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Buyer’s Market
An economic situation in which
the supply of a good or service exceeds
demand, resulting in lower prices.
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Buyer’s Option
The contractual right, established
in a purchase document, to buy a good or
service at a fixed price within a specified time.
See also: Option.
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Buyer’s Right of Routing
The right of the buyer to
select the carrier to be used for the shipment
of goods when the buyer pays freight charges;
the buyer’s right to name the carrier must be
made part of the sales contract before the
shipment of goods if the supplier prepays
the freight.
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Buying (Seasonal) Calendar
A buying plan that is
designed to take advantage of lower seasonal
prices, such as road ice chemicals purchased
in summer.
