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:

Whistle-Blowers

Individuals who expose illegal practices or unethical conduct within an organization to the authorities or the public.

Antitrust Laws

Laws designed to promote fair competition for the benefit of consumers, preventing monopolies and other activities that could restrict trade.

Competitive Strategies

Approaches adopted by businesses to gain a competitive edge over rivals, including differentiation, cost leadership, and focus strategies.

Consumer Welfare

The overall well-being and interest of consumers, focusing on the quality, affordability, and accessibility of goods and services.