Question

In selecting a vendor, a buyer may need to obtain competitive bids by means of a document called a purchasing order.

a. true
b. false

Answer 1

A purchasing order is not used to obtain competitive bids from vendors. It is a document issued by a buyer to a vendor to initiate a purchase.

Step-by-step explanation:

A purchasing order is not used to obtain competitive bids from vendors. A purchasing order is a document issued by a buyer to a vendor to initiate a purchase. It specifies the details of the purchase such as the products or services to be purchased, quantities, prices, and delivery dates. Competitive bidding is typically done through a process called a request for proposal (RFP) or a request for quotation (RFQ), where potential vendors submit their bids or quotes to compete for the buyer's business.