All of the Following Are True About the RFP Process

question 40

Multiple Choice

All of the following are True about the RFP process EXCEPT

• A) Because the RFP is so complete, vendor demonstrations and site visits are usually not necessary.
• B) Because system evaluation is required, end-users should be included.
• C) Because review of responses to RFPs can be time-consuming, RFPs are only sent to a few vendors.
• D) Because the RFP may be used as part of the system contract, it should be complete and accurate.

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Definitions:

Fair Value

A market-based measurement of the price at which an asset could be bought or sold or a liability settled, under current market conditions.

Non-Controlling Interest

The share of ownership in a subsidiary held by investors other than the parent company, often referred to as minority interest.

Cost Method

An accounting method used to value an investment, where the investment is recorded at its original purchase cost, with changes recognized only if dividends are received or there's a permanent decline in value.

Goodwill

An intangible asset representing the excess value paid over the net fair value of identifiable assets and liabilities during an acquisition.