CGFO - Financial Administration -
Purchasing/Procurement Exam Questions
and Answers Graded A+
Privatization - Correct answer-Divestiture of BOTH management and assets of
public function to the private sector
Outsourcing - Correct answer-Divestiture of ONLY the management of a public
function to an outside source
Competition - Correct answer-Provide fair opportunities to qualified vendors to vie
against each other to offer the best prices, quality, and service
Kickback - Correct answer-Accepting value to influence award of contract
Price Fixing - Correct answer-Arrangement between competitors that interfere with
the price
Bid Rigging - Correct answer-Horizontal agreements among competitors to
manipulate competitive bidding process
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, Managed Competition - Correct answer-Requiring in-house service units to
compete with external providers
Monopolization - Correct answer-Single firm has control and charge any price
without fear of losing business in the market
Bribe - Correct answer-Promise, obligation, gift, or reward in order to secure
contract
Attempt to influence outcome, should declare the contract void
Blanket Order - Correct answer-Arrangement with vendor to provide item(s) or
service on an as required/needed basis over-the-counter
Procurement Team - Correct answer-Budget Office
Program Manager (or department rep)
Purchasing Staff
Legal Staff
Accounting
Procurement Stages - Correct answer-Planning
Scheduling
Vendor Selection
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
Purchasing/Procurement Exam Questions
and Answers Graded A+
Privatization - Correct answer-Divestiture of BOTH management and assets of
public function to the private sector
Outsourcing - Correct answer-Divestiture of ONLY the management of a public
function to an outside source
Competition - Correct answer-Provide fair opportunities to qualified vendors to vie
against each other to offer the best prices, quality, and service
Kickback - Correct answer-Accepting value to influence award of contract
Price Fixing - Correct answer-Arrangement between competitors that interfere with
the price
Bid Rigging - Correct answer-Horizontal agreements among competitors to
manipulate competitive bidding process
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, Managed Competition - Correct answer-Requiring in-house service units to
compete with external providers
Monopolization - Correct answer-Single firm has control and charge any price
without fear of losing business in the market
Bribe - Correct answer-Promise, obligation, gift, or reward in order to secure
contract
Attempt to influence outcome, should declare the contract void
Blanket Order - Correct answer-Arrangement with vendor to provide item(s) or
service on an as required/needed basis over-the-counter
Procurement Team - Correct answer-Budget Office
Program Manager (or department rep)
Purchasing Staff
Legal Staff
Accounting
Procurement Stages - Correct answer-Planning
Scheduling
Vendor Selection
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
