Which of the Following Is a Red Flag That Might

question 2

Multiple Choice

Which of the following is a red flag that might indicate that a bid-rigging scheme is occurring?

• A) The contract price is unusually low.
• B) A high bid is followed by amendments that reduce the payments to the contractor.
• C) The losing bidders become sub-contractors on the project.
• D) Many more bidders responded to the request for proposals than expected.

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Definitions:

Right of Return

The right of return is a policy that allows customers to return purchased goods within a specified period for a refund, exchange, or credit.

Sales Revenue

Income earned from the sale of goods or services before any expenses are deducted.

Refund Liability

Refund liability refers to the obligation a company has to return money to its customers for products or services that were returned, canceled, or unsatisfactory.

Freight Costs

Expenses associated with transporting goods from one location to another.