CFE – Law — Question 40

While performing due diligence on a potential vendor, a company finds the vendor’s name on a government list. The list states that the vendor is prohibited from bidding on government contracts for three years. Which type of administrative penalty was imposed against the vendor?

Answer options

• A. Delisting
• B. License revocation
• C. License suspension
• D. Debarment

Correct answer: D

Explanation

The correct answer is D, Debarment, as it specifically refers to the prohibition from bidding on government contracts. The other options do not accurately describe the situation; Delisting refers to removal from a list, License revocation implies a total loss of permissions, and License suspension suggests a temporary pause rather than a specific prohibition related to government contracts.