Procurement- Buying goods or services. The procurement process includes preparing and processing of a demand, the end receipt, and approval of payment. This process involves purchase planning, determining standards, developing specifications, researching suppliers, selecting suppliers, value analysis, financing, price negotiation, making the actual purchase, contract administration, inventory control, and disposal. Purchasing is a part of corporate strategy because the ability to purchase materials determines if the operations will continue. Business can not survive is the price of procurement is more than the profit it makes on selling the product.
LIFO- Last in First Out, is a method of accounting for inventory, which assumes that a company uses and sells it's newest inventory first. If an asset is sold for less that what you paid for it, then the company suffers a capital loss. Also, if an asset is sold for more than the purchase price it is a capital gain. It can have tax advantages, but it can also increase tax liability.
Hiring Freeze- this is a complete shut down of all non-essential hiring. This action is taken by employers to attempt to manage human capital/labor costs in times of economic hardship, or financial crisis. It may be short or long term and is sometimes used instead of laying people off. There may also be some down sizing during a hiring freeze if terminated employees are not replaced.
Angel Investors- Angel investors are usually former professionals that provide starting capital and help with advice and contacts. They are different from venture capitalists, in that angel investors usually operate alone or in very small groups. They play an indirect role as advisers in the business operations of the firm.
Business Plan- A business plan is a set of documents that are prepared by a companies management to provide a summary of it's operational and financial objectives and goals. It is a future projection (usually one to three years), like a blueprint that shows how you expect the business to achieve it's goals. It also addresses some of the companies policies and strategies and is continually modified with changing conditions. It is often prepared for investors and outside lenders. These documents contain pro-forma balance sheets, cash flow statements, income statements. It shows how the financing being sought will affect the companies financial position.
Market Equilibrium- This is a circumstance where the supply of an item is actually equal to it's demand. (Supply and Demand, economic terms). In this case price will remain stable as there is no shortage or surplus in the market.
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