What Is the Process Called in Which Buyers Ask a Number

question 77

Multiple Choice

What is the process called in which buyers ask a number of potential suppliers to submit price quotes on a proposed purchase or contract, of which the lowest will be accepted?

• A) specification
• B) competitive bidding
• C) noncompetitive bidding
• D) auctioning

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Definitions:

Interest

is the cost of borrowing money or the payment received for lending money, typically expressed as an annual percentage of the principal.

Debt

An amount of money borrowed by one party from another, often used to make large purchases that cannot be funded by other means.

Present Value

The current price of a future monetary sum or a succession of cash flows, taking into account a certain rate of interest.

Cash Flows

The comprehensive flow of funds in and out of a corporation, significantly shaping its ability to pay off short-term debts.