Purchase facts for kids

Purchasing is when you buy things or services. When you buy something, it's called a purchase. The opposite of a purchase is a sale, which is when someone sells something. Most of the time, people just say "buy" instead of "purchase" when they go shopping.

What is Purchasing?

Purchasing is all about getting the things you need or want. This could be anything from a new video game or a book to food for dinner. Businesses and governments also do a lot of purchasing. They buy materials to make products, services like cleaning or security, and even other companies!

Big Purchases in History

The word "purchase" has been used for some very important events in history:

• The Louisiana Purchase in 1803 was a huge deal! The United States bought a massive amount of land from France. This made the U.S. much, much larger and helped it grow across the continent.
• In the past, there was a system in the British Army where people could actually purchase their way into certain officer jobs. This meant they paid money to get a position.
• Laws like the Ashbourne Irish Land Purchase Act were created to help people in Ireland buy land. These laws made it easier for farmers to own the land they worked on.
• A Purchase and Sale Agreement is a special contract used when people buy or sell land, like a house or a building. It's a written promise that explains all the rules for the sale.

How Businesses Purchase Things

When big companies buy other companies, they often use the words "purchase" and "acquisition" together. You might hear about "Acquisitions and Mergers" (A&M). This is when one company buys another company (an acquisition) or when two companies join together (a merger). These are usually very big deals that involve a lot of planning and legal agreements.

Images for kids

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  Model of the Acquisition Process.