As the Brainly AI Helper, I'll provide a structured overview of the essay on business functions focusing on purchasing activities, procedures, the National Credit Act, and its impact on businesses.
1. Outline of Purchasing Function Activities:
- Purchasing involves acquiring goods and services for a business's operations.
- Activities include sourcing suppliers, negotiating contracts, placing orders, and managing vendor relationships.
- It aims to obtain quality goods at the best prices to meet business needs efficiently.
2. Description of Purchasing Procedure in Business:
- The purchasing procedure starts with identifying needs, creating purchase requisitions, and obtaining approvals.
- Next, the purchasing department requests quotes, evaluates suppliers, negotiates terms, issues purchase orders, and tracks deliveries.
- Receipt of goods is verified, invoices are matched, and payments are processed, ensuring compliance with company policies.
3. Purpose of the National Credit Act:
- The National Credit Act aims to regulate and promote responsible lending practices.
- It protects consumers by ensuring transparent credit agreements, fair treatment, and affordability assessments.
- The Act sets guidelines for credit providers to prevent over-indebtedness and unfair lending practices.
4. Impact of the National Credit Act on Businesses:
- Businesses need to comply with the Act's provisions when offering credit to customers.
- They must conduct affordability assessments, disclose costs transparently, and adhere to responsible lending practices.
- Non-compliance can result in penalties, fines, reputational damage, and legal consequences, affecting business operations and profitability.
In your essay, elaborate on each point with examples and insights to demonstrate a comprehensive understanding of how purchasing functions, procedures, the National Credit Act, and its implications shape business operations and financial transactions.
