Which of the following statements about reverse auctions is true?
A)Large manufacturers do not engage in reverse auctions.
B)There are no risks associated with reverse auctions.
C)Reverse auctions are an effective procurement process for critical production materials.
D)In a reverse auction, potential suppliers bid against each other.
E)None of the above statements about reverse auctions is true.

Question

Quizplus · Accepted Answer

In a reverse auction, potential suppliers bid against each other to win the business of a buyer, typically lowering their prices to outbid competitors. This is a common and defining feature of reverse auctions.

Which of the Following Statements About Reverse Auctions Is True