EXAM QUESTIONS AD CORRECT ANSWERS
(VERIFIED ANSWERS) Q&A 2026|INSTANT
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1. What is the primary goal of public procurement?
A. Maximize supplier profits
B. Ensure fair, transparent, and competitive purchasing
C. Eliminate all competition
D. Avoid written contracts
Rationale: Public procurement focuses on fairness,
competition, and accountability in spending public funds.
Correct Answer: B
2. Which document formally invites suppliers to submit bids?
A. Purchase order
B. Request for Proposal (RFP)
C. Invoice
D. Delivery note
Rationale: An RFP solicits detailed proposals from suppliers for
evaluation.
Correct Answer: B
3. What does “competitive bidding” ensure?
,A. Higher prices
B. Equal opportunity and best value
C. Exclusive contracts
D. Reduced transparency
Rationale: Competition helps achieve fair pricing and value.
Correct Answer: B
4. Which is NOT a function of a purchasing agent?
A. Supplier evaluation
B. Contract negotiation
C. Medical diagnosis
D. Purchase order issuance
Rationale: Purchasing agents handle procurement, not
healthcare tasks.
Correct Answer: C
5. What is “best value” in procurement?
A. Lowest price only
B. Combination of price, quality, and performance
C. Fastest delivery only
D. Most popular vendor
Rationale: Best value includes multiple evaluation criteria
beyond price.
Correct Answer: B
,6. What is an Invitation for Bid (IFB)?
A. A negotiation meeting
B. A sealed competitive bidding document
C. A contract amendment
D. A payment request
Rationale: IFB is used for sealed, competitive price-based
bidding.
Correct Answer: B
7. What is procurement ethics primarily concerned with?
A. Speed of purchasing
B. Fairness and integrity
C. Supplier marketing
D. Inventory storage
Rationale: Ethics ensures honesty and avoidance of conflicts of
interest.
Correct Answer: B
8. What is a conflict of interest in procurement?
A. Supplier delay
B. Personal gain affecting procurement decisions
C. Price reduction
D. Contract completion
Rationale: Bias due to personal interest compromises fairness.
Correct Answer: B
, 9. Which method is best for complex service procurement?
A. IFB
B. RFP
C. Cash purchase
D. Petty cash
Rationale: RFP allows evaluation of technical and qualitative
factors.
Correct Answer: B
10. What is a purchase order?
A. Supplier invoice
B. Buyer’s formal authorization to purchase
C. Delivery receipt
D. Audit report
Rationale: It authorizes procurement from a supplier.
Correct Answer: B
11. What is contract management?
A. Hiring employees
B. Overseeing contract execution and compliance
C. Advertising products
D. Stock trading