An Advantage of Buying by Performance or Function Over Other

question 16

Multiple Choice

An advantage of buying by performance or function over other specification methods is that it provides:

• A)the opportunity for the potential supplier to establish how to make the most suitable product/service.
• B)an opportunity to purchase identical requirements from a number of different sources of supply.
• C)evidence that the buyer has carefully defined the need and how it may be satisfied.
• D)a standard for measuring and checking materials as supplied.
• E)the potential for equitable competition by ensuring that the suppliers are quoting for exactly the same material or service.

---

Definitions:

Economic Condition

The state of a country's economy at a given time, influenced by factors such as GDP, unemployment rates, and inflation.

Economic Conditions

The state of a country's economy, influenced by factors such as GDP, unemployment rates, and inflation.

Five Cs of Credit

A set of criteria used by lenders to gauge a borrower's creditworthiness: character, capacity, capital, collateral, and conditions.

Capacity

The highest level of production a company can maintain to produce a good or deliver a service.